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Title 46, ShippingRelease 119-110

§53504 Deposits and Withdrawals

Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 535 — CAPITAL CONSTRUCTION FUNDS › § 53504

Last updated Sep 22, 2026|Official source

Summary

When an agreement creates a capital construction fund, the agreement must say how much money will be put into the fund so there is enough to make the withdrawals allowed under section 53509. Deposits and withdrawals must follow the rules in the agreement or rules the Secretary issues. The Secretary cannot require someone to put into the fund more than 50 percent of the part of their taxable income for that year that comes from operating an agreement vessel (as figured under section 53505(a)(1)).

Full Legal Text

Title 46, §53504

Shipping, Source: USLM XML via OLRC

(a)Required Deposits.—
An agreement to establish a capital construction fund shall provide for the deposit in the fund of the amounts agreed to be appropriate to provide for qualified withdrawals under section 53509 of this title.
(b)Applicable Requirements.—
Deposits in and withdrawals from the fund are subject to the requirements included in the agreement or prescribed by the Secretary by regulation. However, the Secretary may not require a person to deposit in the fund for a taxable year more than 50 percent of that portion of the person’s taxable income for that year (as determined under section 53505(a)(1) of this title) that is attributable to the operation of an agreement vessel.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53504(a)46 App.:1177(a) (2d sentence related to deposits).June 29, 1936, ch. 858, title VI, § 607(a) (2d sentence related to deposits), (last sentence), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23–28, 52 Stat. 960; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; July 17, 1952, ch. 939, §§ 17–19, 66 Stat. 764; Pub. L. 85–637, Aug. 14, 1958, 72 Stat. 216; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–45, § 6, May 27, 1961, 75 Stat. 91; Pub. L. 87–271, Sept. 21, 1961, 75 Stat. 570; restated Pub. L. 91–469, § 21(a), Oct. 21, 1970, 84 Stat. 1026; Pub. L. 97–31, § 12(97)(A), Aug. 6, 1981, 95 Stat. 162. 53504(b)46 App.:1177(a) (last sentence). In subsection (a), the words “agreed to be appropriate” are substituted for “agreed upon as necessary or appropriate” to eliminate unnecessary words.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53504

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110