Title 46, ShippingRelease 119-102
§58102 Default on Payment or Maintenance of Reserves
Title 46 › Subtitle V — Merchant Marine › Part G — Restrictions and Penalties › CHAPTER 581 — RESTRICTIONS AND PENALTIES › § 58102
Summary
The Secretary of Transportation can control how many officers and employees a subsidy recipient has and how much they are paid if the recipient defaults on debts to the Secretary or fails to keep the required reserve funds.
Full Legal Text
Title 46, §58102
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The Secretary of Transportation may supervise the number and compensation of all officers and employees of a contractor under the operating-differential subsidy program or a charterer under chapter 575 of this title, receiving an operating-differential subsidy, if the contractor or charterer—
(1)is in default on a mortgage, note, purchase contract, or other obligation to the Secretary; or
(2)has not maintained, in a manner satisfactory to the Secretary, all of the reserves provided for in this subtitle.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5810246 App.:1223(b).June 29, 1936, ch. 858, title VIII, § 805(b), 49 Stat. 2012; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. The words “contractor under the operating-differential subsidy program or a charterer under chapter 575 of this title, receiving an operating-differential subsidy” are substituted for “contractor under part A of subchapter VI of this chapter or subchapter VII of this chapter receiving an operating-differential subsidy” for the reasons explained under section 58101.
Reference
Citations & Metadata
Citation
46 U.S.C. § 58102
Title 46, Shipping
Last Updated
Aug 21, 2026
Release point: 119-102