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Title 46 — ShippingRelease 119-73

§53733 Shipyard modernization and improvement

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 537— - LOANS AND GUARANTEES › Subchapter SUBCHAPTER III— - PARTICULAR PROJECTS › § 53733

Last updated Apr 6, 2026|Official source

Summary

The Administrator can guarantee loans or promise to back up loan payments for private U.S. shipyards that buy modern or advanced shipbuilding technology or related facilities. Only private shipyards can get the guarantee. The government will not guarantee more than 87.5 percent of the actual cost. These guarantees follow the same rules as other guarantees under subchapter I. Advanced shipbuilding technology: tools like computer-controlled machines, robots, automated controls, software, and new techniques to boost quality, productivity, and sustainability. General shipyard facility: on land, docks, lifts, piers, the needed land, and equipment; off land, U.S.-built vessels or floating drydocks or barges used for those jobs. Modern shipbuilding technology: the best proven tech to raise shipyard productivity. The Administrator may accept money from other federal agencies to cover guarantee costs (cost as defined in 2 U.S.C. 661a). Funds used must follow Part I of subtitle A of title IX of division G of the Infrastructure Investment and Jobs Act (Public Law 117–58; 41 U.S.C. 8301 note).

Full Legal Text

Title 46, §53733

Shipping — Source: USLM XML via OLRC

(a)In this section:
(1)The term “advanced shipbuilding technology” includes—
(A)numerically controlled machine tools, robots, automated process control equipment, computerized flexible manufacturing systems, associated computer software, and other technology for improving shipbuilding and related industrial production that advance the state-of-the-art; and
(B)novel techniques and processes designed to improve shipbuilding quality, productivity, and practice, and to promote sustainable development, including engineering design, quality assurance, concurrent engineering, continuous process production technology, energy efficiency, waste minimization, design for recyclability or parts reuse, inventory management, upgraded worker skills, and communications with customers and suppliers.
(2)The term “general shipyard facility” means—
(A)for operations on land—
(i)a structure or appurtenance thereto designed for the construction, reconstruction, repair, rehabilitation, or refurbishment of a vessel, including a graving dock, building way, ship lift, wharf, or pier crane;
(ii)the land necessary for the structure or appurtenance; and
(iii)equipment that is for use with the structure or appurtenance and that is necessary for performing a function referred to in clause (i); and
(B)for operations not on land, a vessel, floating drydock, or barge built in the United States and used for, equipped to be used for, or of a type normally used for, performing a function referred to in subparagraph (A)(i).
(3)The term “modern shipbuilding technology” means the best available proven technology, techniques, and processes appropriate to enhancing the productivity of shipyards.
(b)Under subchapter I of this chapter, the Administrator may guarantee or make a commitment to guarantee the payment of the principal of and interest on an obligation for advanced shipbuilding technology and modern shipbuilding technology of a general shipyard facility in the United States. Only a private shipyard is eligible to receive a guarantee.
(c)Except as otherwise provided in this section, a guarantee or commitment to guarantee under this section is subject to all the provisions applicable to a guarantee or commitment to guarantee under subchapter I of this chapter.
(d)The principal amount of an obligation guaranteed under this chapter may not exceed 87.5 percent of the actual cost of the advanced shipbuilding technology or modern shipbuilding technology.
(e)The Administrator may accept the transfer of amounts from a department, agency, or instrumentality of the United States Government and may use those amounts to cover the cost (as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of making guarantees or commitments to guarantee under this section.
(f)Part I of subtitle A of title IX of division G of the Infrastructure Investment and Jobs Act (Public Law 117–58; 41 U.S.C. 8301 note) shall apply to any funds obligated by the Administrator under this section.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53733(a)46 App.:1279e(d).June 29, 1936, ch. 858, title XI, § 1112, as added Pub. L. 103–160, div. A, title XIII, § 1357(a), Nov. 30, 1993, 107 Stat. 1814. 53733(b)46 App.:1279e(a). 46 App.:1280a.Pub. L. 103–160, title XIII, § 1358, Nov. 30, 1993, 107 Stat. 1816. 53733(c)46 App.:1279e(b) (words before “except”). 53733(d)46 App.:1279e(b) (words beginning with “except”). 53733(e)46 App.:1279e(c). In subsection (a)(2)(A)(i), the words “(as defined in title 1)” are omitted as unnecessary because chapter 1 of the revised title contains a title-wide definition of “vessel” that incorporates the definition in title 1, United States Code. In subsection (b), the words “and subject to the terms the Secretary shall be prescribe” are omitted as unnecessary because section 53702(a) of the revised title provides the Secretary authority to prescribe the terms. The words “Only a private shipyard is eligible to receive a guarantee” are substituted for 46 App. U.S.C. 1280a to eliminate unnecessary words.

Editorial Notes

Amendments

2024—Subsec. (f). Pub. L. 118–159 added subsec. (f). 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(2)(K). See 2006 Amendment note below. Subsecs. (b), (e). Pub. L. 110–181, § 3522(a)(9)(F), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(2)(K), into this section by substituting “Administrator” for “Secretary”. 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)(2)(K), which directed the amendment of section 1279e 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 note for subsecs. (b), (e) and

Historical and Revision Notes

above.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53733

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73