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Title 46, ShippingRelease 119-110

§53514 Relationship of Old Fund to New Fund

Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 535 — CAPITAL CONSTRUCTION FUNDS › § 53514

Last updated Sep 22, 2026|Official source

Summary

People who had a capital construction fund before October 21, 1970 may choose to keep that old fund, but with limits. Old fund — a capital construction fund kept before October 21, 1970. You cannot keep money in the old fund past the agreement’s original end date (ignore any extension made after April 14, 1970). You also cannot have an old fund and a new fund established under this chapter at the same time. If you set up a new fund under this chapter, you may move some or all items from the old fund into the new one tax-free, and for section 53511(c)(3) the deposit date for a moved item is July 1, 1971 or its original deposit date in the old fund, whichever is later.

Full Legal Text

Title 46, §53514

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(a)Definition.—
In this section, the term “old fund” means a capital construction fund maintained before October 21, 1970.
(b)Election To Maintain Old Fund.—
A person maintaining an old fund may elect to continue the old fund, but may not—
(1)hold amounts in the old fund beyond the expiration date provided in the agreement under which the old fund is maintained (determined without regard to an extension or renewal made after April 14, 1970); or
(2)maintain simultaneously the old fund and a new fund established under this chapter.
(c)Application of New Fund Agreement to Old Fund Amounts.—
If a person makes an agreement under this chapter to establish a new fund, the person may agree to extend the agreement to some or all of the amounts in an old fund. Each item in the old fund to be transferred shall be transferred in a nontaxable transaction to the appropriate account in the new fund. For purposes of section 53511(c)(3) of this title, the date of the deposit of an item so transferred shall be July 1, 1971, or the date of the deposit in the old fund, whichever is later.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5351446 App.:1177(j).June 29, 1936, ch. 858, title VI, § 607(j), 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. 1031.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53514

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110