Title 46 — ShippingRelease 119-73not60

§53308 Order and Proportions of Deposits and Withdrawals

Title 46 › Subtitle Subtitle V— Merchant Marine › Part C— Financial Assistance Programs › Chapter 533— CONSTRUCTION RESERVE FUNDS › § 53308

Last updated Apr 5, 2026|Official source

Summary

When money from a sale or an insurance payment is put into more than one deposit, the part that is a gain is treated as if it were put in first. Money taken out is charged against deposits in the order they were made, so older deposits are reduced before newer ones. If a deposit includes some gain that section 53306 says is not recognized, any withdrawal from that deposit is treated as gain in the same share as the gain part of the deposit.

Full Legal Text

Title 46, §53308

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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(2)amounts expended, obligated, or otherwise withdrawn shall be applied against the amounts deposited in the fund in the order of deposit; and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

Apr 5, 2026

Release point: 119-73not60