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Title 46 — ShippingRelease 119-73

§53716 Deposit fund

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 537— - LOANS AND GUARANTEES › Subchapter SUBCHAPTER I— - GENERAL › § 53716

Last updated Apr 6, 2026|Official source

Summary

Creates a Treasury account where the Secretary or Administrator can hold an obligor’s cash as collateral for a government guarantee. The Secretary or Administrator and the obligor must sign an agreement that sets the rules for deposits, withdrawals, use, and reinvestment, gives the United States a legal claim on the money, and includes any extra protections the Government needs. The Secretary or Administrator may invest the money in U.S. government securities so funds are available when required. Extra cash stays uninvested and earns interest paid by the Treasury. No money can be taken out without the Secretary or Administrator’s consent. They may pay income to the obligor under the agreement, but may also keep deposited cash and earnings to recover losses if the obligor defaults.

Full Legal Text

Title 46, §53716

Shipping — Source: USLM XML via OLRC

(a)There is a deposit fund in the Treasury for purposes of this section. The Secretary or Administrator, in accordance with an agreement under subsection (b), may deposit into and hold in the fund cash belonging to an obligor to serve as collateral for a guarantee made under this chapter with respect to the obligor.
(b)The Secretary or Administrator and an obligor shall make a reserve fund or other collateral account agreement to govern the deposit, withdrawal, retention, use, and reinvestment of cash of the obligor held in the fund. The agreement shall contain—
(1)terms and conditions required by this section;
(2)terms that grant to the United States Government a security interest in all amounts deposited into the fund; and
(3)any additional terms considered by the Secretary or Administrator to be necessary to protect fully the interests of the Government.
(c)The Secretary or Administrator may invest and reinvest any part of the amounts in the fund in obligations of the Government with maturities such that amounts in the fund will be available as required for purposes of the agreement under subsection (b). Cash balances in the fund in excess of current requirements shall be maintained in a form of uninvested funds, and the Secretary of the Treasury shall pay interest on these funds.
(d)(1)Cash deposited into the fund may not be withdrawn without the consent of the Secretary or Administrator.
(2)Subject to paragraph (3), the Secretary or Administrator may pay any income earned on cash of an obligor deposited into the fund in accordance with the agreement with the obligor under subsection (b).
(3)The Secretary or Administrator may retain and offset any or all of the cash of an obligor in the fund, and any income realized thereon, as part of the Secretary’s or Administrator’s recovery against the obligor in case of a default by the obligor on an obligation.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5371646 App.:1279b.June 29, 1936, ch. 858, title XI, § 1109, as added Pub. L. 107–107, title XXXV, § 3503, Dec. 28, 2001, 115 Stat. 1392. In subsection (a), the word “established” is omitted for consistency with other codified titles of the United States Code.

Editorial Notes

Amendments

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(H), (3). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(H), (3), into this section by inserting “or Administrator” after “Secretary” wherever appearing, except the second place appearing in subsec. (c), and inserting “or Administrator’s” after “Secretary’s” in subsec. (d)(3). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and

Construction

note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(H), (3), which directed the amendment of section 1279b of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and

Historical and Revision Notes

above.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53716

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73