§57306 Payment of trade-in allowance

Summary

If the owner has already arranged to buy or build a new vessel when the government takes the old one, the Secretary of Transportation must use the trade‑in allowance to lower the new vessel's purchase price instead of paying it to the owner. If the new vessel is built under this subtitle, the Secretary may apply the allowance to required cash payments on terms the Secretary sets. If the new vessel is not built under this subtitle, the Secretary must pay the allowance to the builder for the owner's account when the old vessel is acquired. If the new vessel is delivered to the owner at the time the old vessel is taken, the Secretary must deposit the trade‑in allowance into the owner's capital construction fund.