---
kind: "section"
citation: "46 C.F.R. § 298.16"
title: "46"
number: "298.16"
heading: "Substitution of participants."
url: "https://uscodex.org/cfr/46/298.16"
---

# §298.16. Substitution of participants.

- (a) You may request our permission to substitute participants to a Mortgage and/or Security Agreement in a financing that is receiving assistance authorized by Title XI of the Act.
- (b) **A non-refundable fee of $3,000 is due, payable at the time of the request.** The fee defrays all costs of processing and reviewing a joint application by a mortgagor and/or Obligor and a proposed transferee of a Vessel or Shipyard Project, which is security for Title XI debt, if the proposed transferee is to assume the Mortgage and/or the Security Agreement.

## Notes

### Authority

Authority: 46 U.S.C. chapter 537; 49 CFR 1.93.

### Source

Source: 65 FR 45152, July 20, 2000, unless otherwise noted.