46 U.S.C. § 56502: Adjusting obligations and…

Summary

The Secretary of Transportation may, after a written request and any review the Secretary thinks needed, change a ship’s obligations and arrange for its upkeep if three things are true. First, the ship can’t legally run under the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or a related proclamation, or running it would make it unavailable for national defense or commerce. Second, the ship can’t reasonably be used in other foreign or domestic trade (except short or emergency use under section 56503(b)(5)). Third, because of the Neutrality Act limits or because ships were withdrawn for defense, the owner is not or will not be earning a reasonable return on the capital used. Any changes the Secretary makes last only while those conditions continue.

Title 46, §56502

Shipping, Source: USLM XML via OLRC

(a)General Authority.—

On written application, the Secretary of Transportation may adjust obligations and arrange for maintenance of an essential vessel as provided in this chapter if the Secretary determines, after any investigation or proceeding the Secretary considers desirable, that—

(1)the operation of the vessel in the service, route, or line to which it is assigned under this subtitle, or in which it otherwise would be operated, is not—

(A)lawful under the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or a proclamation issued under that Act; or

(B)compatible with maintaining the availability of the vessel for national defense and commerce;

(2)it is not feasible under existing law to employ the vessel in any other service or operation in foreign or domestic trade (except temporary or emergency operation under section 56503(b)(5) of this title); and

(3)the applicant, because of the restrictions of the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or the withdrawal of vessels for national defense under paragraph (1), is not earning or will not earn a reasonable return on the capital necessarily employed in its business.

(b)Effective Period.—

Adjustments and arrangements under subsection (a) shall continue in effect only as long as the circumstances described in subsection (a) continue to exist.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5650246 App.:1242a(b), (e).June 29, 1940, ch. 442, subdivs. (b), (e), 54 Stat. 684, 686; Pub. L. 97–31, § 12(132), Aug. 6, 1981, 95 Stat. 165. The text of 46 App. U.S.C. 1242a(b) (1st sentence) is omitted as surplus. The text of 46 App. U.S.C. 1242a(e) is omitted as obsolete.

Editorial Notes

References in Text

The Neutrality Act of 1939, referred to in subsec. (a)(1)(A), (3), is act Nov. 4, 1939, ch. 2, 54 Stat. 4, which is classified generally to subchapter II (§ 441 et seq.) of chapter 9 of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see

Short Title

note set out under section 441 of Title 22 and Tables.

§56502 Adjusting Obligations and Arranging Maintenance