---
kind: "section"
citation: "46 C.F.R. § 272.25"
title: "46"
number: "272.25"
heading: "Requirements for subsidy repayment."
url: "https://uscodex.org/cfr/46/272.25"
---

# §272.25. Requirements for subsidy repayment.

- (a) **Repayment of M&R subsidy for compensated marine or other loss.** If an Operator eventually receives compensation from an insurer or any other person for a marine loss or any other loss for which M&R subsidy has been paid, the Operator shall repay to MARAD an amount equal to the amount of subsidy paid with respect to that loss.
- (b) **Repayment of M&R subsidy for Improvements—three year service requirement.** If, within three years after the completion of an Improvement for which M&R subsidy was paid, the Operator permanently withdraws the Eligible Vessel from the ODSA, the Operator shall repay to MARAD an amount equal to the amount of M&R subsidy paid with respect to that Improvement unless MARAD shall have determined that such action was beyond the control of the Operator.
- (c) **Repayment of M&R subsidy due to allocation of costs.** If the allocation of total M&R costs required by [§ 272.41(e)](/cfr/46/272.41.md?p=e) of this part results in the allocation of a lesser amount of subsidizable M&R costs than were actually paid for during the calendar year, the Operator shall repay to MARAD the amount of ODS which was paid in excess of the allocated subsidizable costs.
- (d) **Administrative action.** If an Operator fails to repay an M&R subsidy required to be repaid by this section, MARAD may either reduce any ODS payable by the amount of M&R subsidy required to be repaid by this section, or take any other action necessary to secure repayment.

## Notes

### Authority

Authority: 46 App. U.S.C. 1114(b), 1173, 1176; 49 CFR 1.66.

### Source

Source: 55 FR 34919, Aug. 27, 1990, unless otherwise noted.