---
kind: "section"
citation: "46 C.F.R. § 289.3"
title: "46"
number: "289.3"
heading: "Provision in subsidy agreements and mortgages."
url: "https://uscodex.org/cfr/46/289.3"
---

# §289.3. Provision in subsidy agreements and mortgages.

- (a) All construction-differential subsidy agreements and mortgages relative to vessels covered in [§ 289.2(a)](/cfr/46/289.2.md?p=a) shall provide, wherever possible, that the Maritime Administrator may, in his discretion, require the owner to insure, with commercial underwriters, the interest of the United States.
- (b) All future construction-differential subsidy agreements and future operating subsidy agreements shall require that owners insure vessels covered in § [289.2 (a)](/cfr/46/289.2.md?p=a) and [(d)](/cfr/46/289.2.md?p=d) in amounts acceptable to the Maritime Administration.

## Notes

### Authority

Authority: Sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114. Interpret or apply sec. 12, 60 Stat. 49, as amended; 50 U.S.C. App. 1745.

### Source

Source: General Order 67 Rev., 18 FR 230, Jan. 10, 1953, unless otherwise noted.