--- kind: "section" citation: "46 U.S.C. § 50305" title: "46" title_heading: "Shipping" number: "50305" heading: "Appointment of trustee or receiver and operation of vessels" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/46/50305" units: - "Subtitle V — Merchant Marine" - "Part A — General" - "Chapter 503 — Administrative" --- # §50305. Appointment of trustee or receiver and operation of vessels - (a) **Appointment of Trustees and Receivers.—** - (1) **Appointment of secretary.—** In a proceeding in a court of the [United States](/usc/46/53101.md?p=10) in which a trustee or receiver may be appointed for a corporation operating a [vessel](/usc/46/53501.md?p=9) of [United States](/usc/46/53101.md?p=10) registry between the [United States](/usc/46/53101.md?p=10) and a foreign country, on which the [United States](/usc/46/53101.md?p=10) Government holds a [mortgage](/usc/46/53701.md?p=8), the court may appoint the [Secretary](/usc/46/53101.md?p=8) of Transportation as the sole trustee or receiver (subject to the direction of the court) if— - (A) the court finds that the appointment will— - (i) inure to the advantage of the estate and the parties in interest; and - (ii) tend to carry out the purposes of this subtitle; and - (B) the [Secretary](/usc/46/53101.md?p=8) expressly consents to the appointment. - (2) **Appointment of other person.—** The appointment of another [person](/usc/46/53101.md?p=6) as trustee or receiver without a hearing becomes effective when ratified by the [Secretary](/usc/46/53101.md?p=8), but the [Secretary](/usc/46/53101.md?p=8) may demand a hearing. - (b) **Operation of Vessels.—** - (1) **In general.—** If the court is unwilling to allow the trustee or receiver to operate the [vessel](/usc/46/53501.md?p=9) in [foreign commerce](/usc/46/53101.md?p=4) without financial aid from the Government pending termination of the proceeding, and the [Secretary](/usc/46/53101.md?p=8) certifies to the court that the continued operation of the [vessel](/usc/46/53501.md?p=9) is essential to the [foreign commerce](/usc/46/53101.md?p=4) of the [United States](/usc/46/53101.md?p=10) and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the [Secretary](/usc/46/53101.md?p=8) to operate the [vessel](/usc/46/53501.md?p=9), either directly or through a managing agent or operator employed by the [Secretary](/usc/46/53101.md?p=8). The [Secretary](/usc/46/53101.md?p=8) must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The [Secretary](/usc/46/53101.md?p=8) also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver. - (2) **Payment of operating losses and other amounts.—** The [Secretary](/usc/46/53101.md?p=8) has no claim against the corporation, its estate, or its assets for operating losses paid by the [Secretary](/usc/46/53101.md?p=8), but the [Secretary](/usc/46/53101.md?p=8) may pay amounts for depreciation the [Secretary](/usc/46/53101.md?p=8) considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the [Secretary](/usc/46/53101.md?p=8) resulting from the operation of the [vessel](/usc/46/53501.md?p=9). - (3) **Deemed operation by government.—** A [vessel](/usc/46/53501.md?p=9) operated by the [Secretary](/usc/46/53101.md?p=8) under this subsection is deemed to be a [vessel](/usc/46/53501.md?p=9) operated by the [United States](/usc/46/53101.md?p=10) under [chapter 309](/usc/46/chstIII/ch309.md) of this title. ## Source credit (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1565.) ## Notes | Historical and Revision Notes | | | | --- | --- | --- | | Revised
Section | Source (U.S. Code) | Source (Statutes at Large) | | 50305 | 46 App.:1247. | June 29, 1936, ch. 858, title IX, § 908, as added Pub. L. 95–598, title III, § 334, Nov. 6, 1978, 92 Stat. 2680; Pub. L. 97–31, § 12(134), Aug. 6, 1981, 95 Stat. 165. | In subsection (a)(1), before subparagraph (A), the words “Notwithstanding any other provision of law” and “bankruptcy, equity, or admiralty” are omitted as unnecessary. In subsection (a)(2), the words “but the Secretary may demand a hearing” are substituted for “unless the Secretary shall deem a hearing necessary” for clarity. In subsection (b)(1), the words “subject to the orders of the court” and “comply with the terms imposed by the court” are omitted as unnecessary. In subsection (b)(2), the words “operating losses paid by the Secretary” are substituted for “the amount of such payments” for clarity. In subsection (b)(3), the words “vessel operated by the United States” are substituted for “vessel of the United States” for clarity and consistency with chapter 309.