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Title 46 — ShippingRelease 119-73not60

§53514 Relationship of Old Fund to New Fund

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

Last updated Apr 5, 2026|Official source

Summary

People who have a capital construction fund set up before October 21, 1970 can choose to keep that old fund. They must not keep money in it past the original agreement’s end date (ignore any extensions made after April 14, 1970). They also cannot keep an old fund and start a new fund at the same time. If they make a new fund, some or all items from the old fund can be moved into the new fund tax-free. Each transferred item goes into the proper new account and is treated as deposited on July 1, 1971, or on its original deposit date in the old fund, whichever is later.

Full Legal Text

Title 46, §53514

Shipping — Source: USLM XML via OLRC

(a)In this section, the term “old fund” means a capital construction fund maintained before October 21, 1970.
(b)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)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

Apr 5, 2026

Release point: 119-73not60