§57305 — Title 46 Shipping | U.S. Code

Summary

When an obsolete vessel is acquired, the Secretary of Transportation must set a trade‑in allowance equal to the vessel’s fair value. To find fair value, the Secretary looks at scrap value in U.S. and foreign markets, depreciation using a 20‑ or 25‑year life, and the vessel’s market value for operation in world or U.S. commerce. If the owner uses the old vessel while a new one is being built under contract, the Secretary must reduce the allowance by the fair value of that use and sets the use rate at the time the construction contract is made.

Title 46, §57305

Shipping — Source: USLM XML via OLRC

(a)The Secretary of Transportation shall determine the trade-in allowance for an obsolete vessel at the time of acquisition of the vessel. The allowance shall be the fair value of the vessel. In determining the value, the Secretary shall consider—

(1)the scrap value of the obsolete vessel in American and foreign markets;

(2)the depreciated value based on a 20-year or 25-year life, whichever applies to the obsolete vessel; and

(3)the market value of the obsolete vessel for operation in world commerce or in the domestic or foreign commerce of the United States.

(b)If acquisition of the obsolete vessel occurs when the owner contracts for the construction of the new vessel, and the owner uses the obsolete vessel during the period of construction of the new vessel, the Secretary shall reduce the trade-in allowance by an amount representing the fair value of that use. The Secretary shall establish the rate for use of the obsolete vessel when the contract for construction of the new vessel is made.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 57305(a)46 App.:1160(b) (3d sentence), (d) (1st, 2d sentences).June 29, 1936, ch. 858, title V, § 510(b) (3d sentence), (d), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; July 17, 1952, ch. 939, § 8, 66 Stat. 762; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–401, Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, § 35(a), Oct. 21, 1970, 84 Stat. 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161. 57305(b)46 App.:1160(d) (3d, last sentences). In subsection (a), the words “fair value” are substituted for “fair and reasonable value” to eliminate unnecessary words. In paragraph (3), the word “commerce” is substituted for “trade” for consistency in the chapter. In subsection (b), the words “for the entire period of such use” are omitted as unnecessary.

§57305 Determination of trade-in allowance

Summary

Title 46, §57305

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata