Title 46, ShippingRelease 119-102
§53308 Order and Proportions of Deposits and Withdrawals
Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 533 — CONSTRUCTION RESERVE FUNDS › § 53308
Summary
If sale proceeds or an insurance indemnity are put into a fund in more than one deposit, the part that is gain is treated as if it were deposited first. Withdrawals are taken out in the order deposits were made, and if a deposit partly contains a gain not recognized under section 53306, withdrawals from that deposit count as gain in the same proportion as that gain part.
Full Legal Text
Title 46, §53308
Shipping, Source: USLM XML via OLRC
In this chapter—
(1)if the net proceeds of a sale or the net indemnity for a loss is deposited in more than one deposit, the amount consisting of the gain shall be deemed to be deposited first;
(2)amounts expended, obligated, or otherwise withdrawn shall be applied against the amounts deposited in the fund in the order of deposit; and
(3)if a deposit consists in part of a gain not recognized under section 53306 of this title, any expenditure, obligation, or withdrawal applied against that deposit shall be deemed to be a gain in the proportion that the part of the deposit consisting of a gain bears to the total amount of the deposit.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5330846 App.:1161(e).June 29, 1936, ch. 858, title V, § 511(e), as added Oct. 10, 1940, ch. 849, 54 Stat. 1107.
Reference
Citations & Metadata
Citation
46 U.S.C. § 53308
Title 46, Shipping
Last Updated
Aug 21, 2026
Release point: 119-102