1. U.S. Code
  2. title 46
  3. subtitle V
  4. part E
  5. chapter 563
  6. § 56305

Collapse to view only § 56305. Vessel encumbrances

§ 56301. General authority

During a national emergency declared by Presidential proclamation, or a period for which the President has proclaimed that the security of the national defense makes it advisable, the Secretary of Transportation may requisition or purchase, or requisition or charter the use of, a vessel owned by citizens of the United States, a documented vessel, or a vessel under construction in the United States.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)

CITE AS: 46 USC 56301

§ 56302. Charter terms
(a)In General.—If a vessel is requisitioned for use but not ownership under this chapter, the Secretary of Transportation, at the time of requisition or as soon thereafter as the situation allows, shall offer the person entitled to possession of the vessel a charter containing—
(1) the terms the Secretary believes should govern the relationship between the United States Government and the person; and
(2) the rate of hire the Secretary considers just compensation for the use of the vessel and the services required under the charter.
(b)Refusal To Accept.—If the person does not accept the charter and rate of hire, the parties shall proceed as provided in section 56304 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)

CITE AS: 46 USC 56302

§ 56303. Compensation
(a)In General.—As soon as practicable, the Secretary of Transportation shall determine and pay just compensation for a vessel requisitioned under this chapter.
(b)Factors Not Affecting Value.—The value of a vessel may not be considered enhanced by the circumstances requiring its requisition. Consequential damages arising from the requisition may not be paid.
(c)Effect of Construction-Differential Subsidy.—
(1)If paid.—If a construction-differential subsidy has been paid for the vessel, the value of the vessel at the time of requisition shall be determined under section 802 of the Merchant Marine Act, 1936.
(2)If not paid.—If a construction-differential subsidy has not been paid for the vessel, the value of any national defense features previously paid for by the United States Government shall be excluded.
(d)Loss or Damage During Charter.—If a vessel is lost or damaged by a risk assumed by the Government under the charter, but a valuation for the vessel or a means of compensation has not been agreed to, the Secretary shall pay just compensation for the loss or damage, to the extent the person is not reimbursed through insurance.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)

CITE AS: 46 USC 56303

§ 56304. Disputed compensation

If the person entitled to compensation disputes the amount of just compensation determined by the Secretary of Transportation under this chapter, the Secretary shall pay the person, as a tentative advance, 75 percent of the amount determined. The person may bring a civil action against the United States to recover just compensation. If the tentative advance paid under this section is greater than the amount of the court’s judgment, the person shall refund the difference.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)

CITE AS: 46 USC 56304

§ 56305. Vessel encumbrances
(a)In General.—The existence of an encumbrance on a vessel does not prevent the requisition of the vessel under this chapter.
(b)Deposit in Treasury.—
(1)In general.—If an encumbrance exists, the Secretary of Transportation may deposit part of the compensation or advance of compensation to be paid under this chapter (but not more than the total amount of all encumbrances) in a fund in the Treasury. The Secretary shall publish notice of the creation of the fund in the Federal Register.
(2)Availability of amounts deposited.—Amounts deposited in the fund shall be available to pay the compensation or any of the encumbrances (including encumbrances stipulated to in a court of the United States or a State) existing at the time the vessel was requisitioned.
(c)Civil Action.—
(1)In general.—Within 6 months after publication of notice under subsection (b), the holder of an encumbrance may bring a civil action in admiralty, according to the principles of libels in rem, against the fund.
(2)Venue.—The action must be brought in the district court of the United States—
(A) from whose custody the vessel was or may be requisitioned; or
(B) in whose district the vessel was located when it was requisitioned.
(3)Service of process.—Service of process shall be made on the appropriate United States Attorney, the Attorney General, and the Secretary, in the manner provided by the Federal Rules of Civil Procedure (28 App. U.S.C.). Notice of the action shall be given to all interested persons as ordered by the court.
(4)As between private parties.—The action shall proceed and be determined according to the principles of law and the rules of practice applicable in like cases between private parties.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)

CITE AS: 46 USC 56305

§ 56306. Use and transfer of vessels
(a)In General.—The Secretary of Transportation may repair, recondition, reconstruct, operate, or charter for operation, a vessel acquired under this chapter.
(b)Transfer to Other Agencies.—The Secretary may transfer the possession or control of a vessel acquired under this chapter to another department or agency of the United States Government on terms and conditions approved by the President. The department or agency shall promptly reimburse the Secretary for expenditures for just compensation, purchase price, charter hire, repairs, reconditioning, or reconstruction.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1656.)

CITE AS: 46 USC 56306

§ 56307. Return of vessels
When a vessel requisitioned for use but not ownership is returned to the owner, the Secretary of Transportation shall—
(1) return the vessel in a condition at least as good as when taken, less ordinary wear and tear; or
(2) pay the owner an amount sufficient to recondition the vessel to that condition, less ordinary wear and tear.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1656.)

CITE AS: 46 USC 56307

§ 56308. Transfer of substitute vessels

In the case of any vessel constructed in the United States after January 1, 1937, which has been taken by the United States for use in any manner, the Secretary of Transportation, if in his opinion the transfer would aid in carrying out the policies of this Act,1

1 See References in Text note below.
is authorized to transfer to the owner of such vessel another vessel which is deemed by the Secretary to be of comparable type with adjustments for depreciation and difference in design or speed, and to the extent applicable, such other adjustments and terms and conditions, including transfer of mortgage obligations in favor of the United States binding upon the old vessel, as the Secretary may prescribe.

(Added and amended Pub. L. 115–91, div. C, title XXXV, § 3502(a)(2), (b)(5), Dec. 12, 2017, 131 Stat. 1910.)

CITE AS: 46 USC 56308

§ 56309. Emergency foreign vessel acquisition; purchase or requisition of vessels lying idle in United States waters

During any period in which vessels may be requisitioned under this chapter, the President is authorized and empowered through the Secretary of Transportation to purchase, or to requisition, or for any part of such period to charter or requisition the use of, or to take over the title to or possession of, for such use or disposition as he shall direct, any merchant vessel not owned by citizens of the United States which is lying idle in waters within the jurisdiction of the United States and which the President finds to be necessary to the national defense. Just compensation shall be determined and made to the owner or owners of any such vessel in accordance with the applicable provisions of this chapter. Such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States in a separate deposit fund. Payments for such compensation and also for payment of any valid claim upon such vessel in accord with the provisions of section 56305, shall be made from such fund upon the certificate of the Secretary of Transportation.

(Added and amended Pub. L. 115–91, div. C, title XXXV, § 3504(a), Dec. 12, 2017, 131 Stat. 1911.)

CITE AS: 46 USC 56309

§ 56310. Voluntary purchase or charter agreements

During any period in which vessels may be requisitioned under this chapter as amended,1

1 So in original.
the President is authorized through the Secretary of Transportation to acquire by voluntary agreement of purchase or charter the ownership or use of any merchant vessel not owned by citizens of the United States.

(Added and amended Pub. L. 115–91, div. C, title XXXV, § 3504(b), Dec. 12, 2017, 131 Stat. 1912.)

CITE AS: 46 USC 56310

§ 56311. Requisitioned vessels
(a) Any vessel not documented under the laws of the United States, acquired by or made available to the Secretary of Transportation under section 56309 or 56310, as applicable, or otherwise, may, notwithstanding any other provision of law, in the discretion of the Secretary of the department in which the Coast Guard is operating be documented as a vessel of the United States under such rules and regulations or orders, and with such limitations, as the Secretary of the department in which the Coast Guard is operating may prescribe or issue as necessary or appropriate to carry out the purposes and provisions of section 56309 or 56310, as applicable, and in accordance with the provisions of subsection (c), engage in the coastwise trade when so documented. Any document issued to a vessel under the provisions of this subsection shall be surrendered at any time that such surrender may be ordered by the Secretary of the department in which the Coast Guard is operating. No vessel, the surrender of the documents of which has been so ordered, shall, after the effective date of such order, have the status of a vessel of the United States unless documented anew.
(b) The President may, notwithstanding any other provisions of law, by rules and regulations or orders, waive compliance with any provision of law relating to masters, officers, members of the crew, or crew accommodations on any vessel documented under authority of this section to such extent and upon such terms as he finds necessary because of the lack of physical facilities on such vessels, and because of the need to employ aliens for their operation. No vessel shall cease to enjoy the benefits and privileges of a vessel of the United States by reason of the employment of any person in accordance with the provisions of this subsection.
(c) Any vessel while documented under the provisions of this section, when chartered under section 56309 or 56310, as applicable, by the Secretary of Transportation to Government agencies or departments or to private operators, may engage in the coastwise trade under permits issued by the Secretary of Transportation, who is authorized to issue permits for such purpose pursuant to such rules and regulations as he may prescribe. The Secretary of Transportation is authorized to prescribe such rules and regulations as he may deem necessary or appropriate to carry out the purposes and provisions of this section. Section 57109 shall not apply with respect to vessels chartered to Government agencies or departments or to private operators or otherwise used or disposed of under section 56309 or 56310, as applicable. Existing laws covering the inspection of steam vessels are made applicable to vessels documented under this section only to such extent and upon such conditions as may be required by regulations of the Secretary of the department in which the Coast Guard is operating: Provided, That in determining to what extent those laws should be made applicable, due consideration shall be given to the primary purpose of transporting commodities essential to the national defense.
(d) The Secretary of Transportation without regard to the 1
1 So in original. The word “the” probably should not appear.
section 6101 of title 41 may repair, reconstruct, or recondition any vessels to be utilized under section 56309 or 56310, as applicable. The Secretary of Transportation and any other Government department or agency by which any vessel is acquired or chartered, or to which any vessel is transferred or made available under section 56309 or 56310, as applicable, may, with the aid of any funds available and without regard to the provisions of section 6101 of title 41, repair, reconstruct, or recondition any such vessels to meet the needs of the services intended, or provide facilities for such repair, reconstruction, or reconditioning. The Secretary of Transportation may operate or charter for operation any vessel to be utilized under section 56309 or 56310, as applicable 2
2 So in original. Probably should be followed by a comma.
to private operators, citizens of the United States, or to any department or agency of the United States Government, without regard to the provisions of chapter 575, and any department or agency of the United States Government is authorized to enter into such charters.
(e) In case of any voyage of a vessel documented under the provisions of this section begun before the date of termination of an effective period of section 196 of this title, but is completed after such date, the provisions of this section shall continue in effect with respect to such vessel until such voyage is completed.
(Added and amended Pub. L. 115–91, div. C, title XXXV, § 3504(c), Dec. 12, 2017, 131 Stat. 1912.)

CITE AS: 46 USC 56311

§ 56312. Documented defined
(Added Pub. L. 115–91, div. C, title XXXV, § 3504(d), Dec. 12, 2017, 131 Stat. 1913.)

CITE AS: 46 USC 56312