§57306 Payment of Trade-in Allowance

Summary

When the government takes an old vessel at the time the owner signs a contract to build or buy a new one, the Secretary of Transportation must use the trade‑in allowance to reduce the new vessel’s purchase cost instead of paying the owner. If the new vessel is built under this subtitle, the Secretary may apply the allowance toward required cash payments on terms the Secretary sets; if it is not, the Secretary must pay the allowance to the builder for the owner’s account when the old vessel is taken. If the government takes the old vessel when the new vessel is delivered to the owner, the Secretary must put the trade‑in allowance into the owner’s capital construction fund.