--- kind: "section" citation: "46 U.S.C. § 53105" title: "46" title_heading: "Shipping" number: "53105" heading: "Obligations and rights under operating agreements" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/46/53105" units: - "Subtitle V — Merchant Marine" - "Part C — Financial Assistance Programs" - "Chapter 531 — Maritime Security Fleet" --- # §53105. Obligations and rights under operating agreements - (a) **Operation of Vessel.—** An [operating agreement](/usc/46/53201.md?p=8) under this chapter shall require that, during the period a [vessel](/usc/46/53501.md?p=9) is operating under the [agreement](/usc/46/53201.md?p=8)— - (1) the [vessel](/usc/46/53501.md?p=9)— - (A) shall be operated exclusively in the [foreign commerce](/usc/46/53101.md?p=4) or, except as provided in [paragraph (2)](#a-2), in mixed [foreign commerce](/usc/46/53101.md?p=4) and domestic trade allowed under a registry endorsement issued under [section 12111 of this title](/usc/46/12111.md); and - (B) shall not otherwise be operated in the coastwise trade; - (2) in the case of a [vessel](/usc/46/53501.md?p=9), other than a replacement [vessel](/usc/46/53501.md?p=9) under [subsection (f)](#f), first covered by an [operating agreement](/usc/46/53201.md?p=8) after the date of the enactment of the National Defense Authorization Act for [Fiscal Year](/usc/46/53201.md?p=6) 2018, the [vessel](/usc/46/53501.md?p=9) shall not be operated in the transportation of [cargo](/usc/46/53901.md?p=2) between points in the [United States](/usc/46/53101.md?p=10) and its territories either directly or via a foreign port; and - (3) the [vessel](/usc/46/53501.md?p=9) shall be documented under [chapter 121](/usc/46/chstII/ptH/ch121.md) of this title. - (b) **Annual Payments by Secretary.—** - (1) **In general.—** An [operating agreement](/usc/46/53201.md?p=8) under this chapter shall require, subject to the availability of appropriations, that the [Secretary](/usc/46/53101.md?p=8) make a payment each [fiscal year](/usc/46/53201.md?p=6) to the [contractor](/usc/46/53101.md?p=2) in accordance with section 53106. - (2) **Operating agreement is obligation of united states government.—** An [operating agreement](/usc/46/53201.md?p=8) under this chapter constitutes a contractual [obligation](/usc/46/53701.md?p=9) of the [United States](/usc/46/53101.md?p=10) Government to pay the amounts provided for in the [agreement](/usc/46/53201.md?p=8) to the extent of actual appropriations. - (c) **Documentation Requirement.—** Each [vessel](/usc/46/53501.md?p=9) covered by an [operating agreement](/usc/46/53201.md?p=8) (including an [agreement](/usc/46/53201.md?p=8) terminated under [section 53104(c)(2)](/usc/46/53104.md?p=c-2)) shall remain documented under [chapter 121](/usc/46/chstII/ptH/ch121.md) of this title, until the date the [operating agreement](/usc/46/53201.md?p=8) would terminate according to its terms. - (d) **National Security Requirements.—** - (1) **In general.—** A [contractor](/usc/46/53101.md?p=2) with respect to an [operating agreement](/usc/46/53201.md?p=8) (including an [agreement](/usc/46/53201.md?p=8) terminated under [section 53104(c)(2)](/usc/46/53104.md?p=c-2)) shall continue to be bound by the provisions of [section 53107](/usc/46/53107.md) until the date the [operating agreement](/usc/46/53201.md?p=8) would terminate according to its terms. - (2) **Emergency preparedness agreement.—** All terms and conditions of an Emergency Preparedness [Agreement](/usc/46/53201.md?p=8) entered into under [section 53107](/usc/46/53107.md) shall remain in effect until the date the [operating agreement](/usc/46/53201.md?p=8) would terminate according to its terms, except that the terms of such Emergency Preparedness [Agreement](/usc/46/53201.md?p=8) may be modified by the mutual consent of the [contractor](/usc/46/53101.md?p=2), the [Secretary](/usc/46/53101.md?p=8) of Transportation, and the [Secretary](/usc/46/53101.md?p=8) of Defense. - (e) **Transfer of Operating Agreements.—** A [contractor](/usc/46/53101.md?p=2) under an [operating agreement](/usc/46/53201.md?p=8) may transfer the [agreement](/usc/46/53201.md?p=8) (including all rights and [obligations](/usc/46/53701.md?p=9) under the [operating agreement](/usc/46/53201.md?p=8)) to any [person](/usc/46/53101.md?p=6) that is eligible to enter into the [operating agreement](/usc/46/53201.md?p=8) under this chapter if the [Secretary](/usc/46/53101.md?p=8) and the [Secretary](/usc/46/53101.md?p=8) of Defense determine that the transfer is in the best interests of the [United States](/usc/46/53101.md?p=10). A transaction shall not be considered a transfer of an [operating agreement](/usc/46/53201.md?p=8) if the same legal entity with the same [vessels](/usc/46/53501.md?p=9) remains the contracting party under the [operating agreement](/usc/46/53201.md?p=8). - (f) **Replacement Vessels.—** A [contractor](/usc/46/53101.md?p=2) may replace a [vessel](/usc/46/53501.md?p=9) under an [operating agreement](/usc/46/53201.md?p=8) with another [vessel](/usc/46/53501.md?p=9) that is eligible to be included in the [Fleet](/usc/46/53101.md?p=3) under [section 53102(b)](/usc/46/53102.md?p=b), if the [Secretary](/usc/46/53101.md?p=8), in conjunction with the [Secretary](/usc/46/53101.md?p=8) of Defense, approves the replacement of the [vessel](/usc/46/53501.md?p=9). ## Source credit (Added Pub. L. 108–136, div. C, title XXXV, § 3531(a), Nov. 24, 2003, 117 Stat. 1812; amended Pub. L. 109–304, § 13(a)(4), Oct. 6, 2006, 120 Stat. 1701; Pub. L. 109–364, div. C, title XXXV, § 3502(a), Oct. 17, 2006, 120 Stat. 2514; Pub. L. 110–181, div. C, title XXXV, § 3526(f), Jan. 28, 2008, 122 Stat. 602; Pub. L. 112–239, div. C, title XXXV, § 3508(e), Jan. 2, 2013, 126 Stat. 2225; Pub. L. 115–91, div. C, title XXXV, § 3503(a), Dec. 12, 2017, 131 Stat. 1911.) ## Notes ### Editorial Notes ### References in Text The date of the enactment of the National Defense Authorization Act for Fiscal Year 2018, referred to in subsec. (a)(2), is the date of enactment of Pub. L. 115–91, which was approved Dec. 12, 2017. ### Amendments 2017—Subsec. (a)(1)(A). Pub. L. 115–91, § 3503(a)(1), inserted “, except as provided in paragraph (2),” after “in the foreign commerce or”. Subsec. (a)(2), (3). Pub. L. 115–91, § 3503(a)(2)–(4), added par. (2) and redesignated former par. (2) as (3). 2013—Subsec. (e). Pub. L. 112–239, § 3508(e)(1), amended subsec. (e) generally. Prior to amendment, subsec. (e) related to transfer of operating agreements, with limitation based on citizenship of recipient. Subsec. (f). Pub. L. 112–239, § 3508(e)(2), amended subsec. (f) generally. Prior to amendment, text read as follows: “A contractor may replace a vessel under an operating agreement with another vessel that is eligible to be included in the Fleet under section 53102(b), if the Secretary, in conjunction with the Secretary of Defense, approves replacement of the vessel.” 2008—Subsec. (e)(2). Pub. L. 110–181 substituted “section 50501 of this title” for “section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802),”. 2006—Subsec. (a)(1)(A). Pub. L. 109–304, § 13(a)(4)(A), substituted “section 12111” for “section 12105”. Subsec. (e). Pub. L. 109–364 designated existing provisions as par. (1), inserted heading and aligned margins in par. (1), and added par. (2). Subsec. (f). Pub. L. 109–304, § 13(a)(4)(B), substituted “approves” for “approve”.