46 U.S.C. § 53509: Qualified withdrawals

Summary

A withdrawal from a capital construction fund counts as a qualified withdrawal when it follows the fund agreement and is used to buy, build, or rebuild a qualified vessel or a barge or container that belongs to that vessel, or to pay the principal on a loan taken to buy, build, or rebuild such a vessel or its barge or container. A barge or container only qualifies if it is built in the United States, unless the Secretary makes different rules. If the person keeping the fund is not meeting important duties, the Secretary may, under joint regulations and after giving notice and a chance for a hearing, treat money in the fund as a nonqualified withdrawal.

Title 46, §53509

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(a)In General.—

Subject to subsection (b), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for— (1)

(2)the payment of the principal on indebtedness incurred in the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel.

(b)Barges and Containers.—

Except as provided in regulations prescribed by the Secretary, subsection (a) applies to a barge or container only if it is constructed in the United States.

(c)Treatment as Nonqualified Withdrawal.—

Under joint regulations, if the Secretary determines that a substantial obligation under an agreement is not being fulfilled, the Secretary, after notice and opportunity for a hearing to the person maintaining the fund, may treat any amount in the fund as an amount withdrawn from the fund in a nonqualified withdrawal.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5350946 App.:1177(f).June 29, 1936, ch. 858, title VI, § 607(f), 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. 1029; Pub. L. 97–31, § 12(97)(A), Aug. 6, 1981, 95 Stat. 162. In subsection (c), the words “any amount in the fund” are substituted for “the entire fund or any portion thereof” to eliminate unnecessary words.

§53509 Qualified Withdrawals

Summary

Title 46, §53509

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata