Title 46, ShippingRelease 119-110
§57306 Payment of Trade-in Allowance
Title 46 › Subtitle V — Merchant Marine › Part F — Government-Owned Merchant Vessels › CHAPTER 573 — VESSEL TRADE-IN PROGRAM › § 57306
Summary
The Secretary must apply the trade‑in allowance to the new vessel when an owner trades in an obsolete vessel at contract time. If the new vessel is built under the program, the allowance may be used for required cash payments on terms the Secretary sets; if not, it must be paid to the builder for the owner. If the trade‑in happens at delivery, the allowance must be deposited into the owner's capital construction fund.
Full Legal Text
Title 46, §57306
Shipping, Source: USLM XML via OLRC
(a)Acquisition at Time of Contract.—
If acquisition of an obsolete vessel under this chapter occurs when the owner contracts for the construction or purchase of the new vessel, the Secretary of Transportation shall apply the trade-in allowance to the purchase price of the new vessel rather than paying it to the owner. If the new vessel is constructed under this subtitle, the Secretary may apply the trade-in allowance to the required cash payments on terms and conditions the Secretary may prescribe. If the new vessel is not constructed under this subtitle, the Secretary shall pay the trade-in allowance to the builder of the vessel for the account of the owner when the Secretary acquires the obsolete vessel.
(b)Acquisition at Time of Delivery.—
If acquisition of the obsolete vessel occurs when the new vessel is delivered to the owner, the Secretary shall deposit the trade-in allowance in the owner’s capital construction fund.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5730646 App.:1160(b) (4th–7th sentences).June 29, 1936, ch. 858, title V, § 510(b) (4th–7th sentences), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 87–401, subdiv. (1), Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, §§ 12(b), 35(a), Oct. 21, 1970, 84 Stat. 1022, 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161. In subsection (b), the words “acquisition of the obsolete vessel occurs” are substituted for “title to the obsolete vessel is acquired” for consistency in the chapter.
Reference
Citations & Metadata
Citation
46 U.S.C. § 57306
Title 46, Shipping
Last Updated
Sep 22, 2026
Release point: 119-110