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Title 46 — ShippingRelease 119-73

§53705 Pledge of United States Government

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 537— - LOANS AND GUARANTEES › Subchapter SUBCHAPTER I— - GENERAL › § 53705

Last updated Apr 6, 2026|Official source

Summary

The United States government promises to pay any guarantee made under this law. That promise covers the amount borrowed (principal) and any interest, including interest that builds up from the date the borrower defaults until the government pays the guarantee in full. A guarantee or a promise to guarantee under this law counts as proof that the loan or obligation was eligible for the guarantee. Once made, the guarantee’s validity cannot be challenged.

Full Legal Text

Title 46, §53705

Shipping — Source: USLM XML via OLRC

(a)The full faith and credit of the United States Government is pledged to the payment of a guarantee made under this chapter, for both principal and interest, including interest (as may be provided for in the guarantee) accruing between the date of default under a guaranteed obligation and the date of payment in full of the guarantee.
(b)A guarantee or commitment to guarantee made under this chapter is conclusive evidence of the eligibility of the obligation for the guarantee. The validity of a guarantee or commitment to guarantee made under this chapter is incontestable.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53705(a)46 App.:1273(d).June 29, 1936, ch. 858, title XI, § 1103(d), (e) (1st sentence), as added June 23, 1938, ch. 600, § 46, 52 Stat. 969; Aug. 15, 1953, ch. 513, § 1, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 3, 68 Stat. 1268; June 25, 1956, ch. 438, 70 Stat. 332; Aug. 7, 1956, ch. 1026, § 1(a), (c), (d), 70 Stat. 1087; Pub. L. 91–469, § 30, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 910; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(1), Oct. 30, 1984, 98 Stat. 3130. 53705(b)46 App.:1273(e) (1st sentence).

Editorial Notes

Amendments

2008—Pub. L. 110–181 repealed Pub. L. 109–163, § 3507(a)(1)(C). See 2006 Amendment note below. 2006—Pub. L. 109–163, § 3507(a)(1)(C), which directed the amendment of section 1273(e) of the former Appendix to this title from which this section was derived in part by striking “Secretary” each place it appears and inserting “Secretary or Administrator”, was repealed by Pub. L. 110–181. See

Historical and Revision Notes

above.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53705

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73