---
kind: "section"
citation: "46 U.S.C. § 53205"
title: "46"
title_heading: "Shipping"
number: "53205"
heading: "Obligations and rights under operating agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53205"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 532 — Cable Security Fleet"
---

# §53205. 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 the [vessel](/usc/46/53501.md?p=9) is operating under the [Agreement](/usc/46/53201.md?p=8), the [vessel](/usc/46/53501.md?p=9)—
  - (1) shall be operated in the trade for [Cable Services](/usc/46/53201.md?p=1), or under a charter to the [United States](/usc/46/53101.md?p=10); and
  - (2) shall be documented under [chapter 121](/usc/46/chstII/ptH/ch121.md) of this title.
- (b) **Annual Payments by the 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 payment to the [Contractor](/usc/46/53101.md?p=2) in accordance with section 53206.
  - (2) **Operating agreement is an obligation of the 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 [Operating 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 53204(c)(2)](/usc/46/53204.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 own 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 53204(c)(2)](/usc/46/53204.md?p=c-2)) shall continue to be bound by the provisions of [section 53207](/usc/46/53207.md) until the date the [Operating Agreement](/usc/46/53201.md?p=8) would terminate according to its terms.
  - (2) **Contingency agreement with operating agency.—** All terms and conditions of a [Contingency Agreement](/usc/46/53201.md?p=4) entered into under [section 53207](/usc/46/53207.md) shall remain in effect until a date the [Operating Agreement](/usc/46/53201.md?p=8) would terminate according to its terms, except that the terms of such [Contingency Agreement](/usc/46/53201.md?p=4) may be modified by the mutual consent of the [Contractor](/usc/46/53101.md?p=2), and the [Operating Agency](/usc/46/53201.md?p=7).
- (e) **Transfer of Operating Agreements.—** [Operating Agreements](/usc/46/53201.md?p=8) shall not be transferrable by the [Contractor](/usc/46/53101.md?p=2).
- (f) **Replacement Vessel.—** 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 53202(b)](/usc/46/53202.md?p=b), if the [Secretary](/usc/46/53101.md?p=8) and the [Operating Agency](/usc/46/53201.md?p=7) jointly determine that the replacement [vessel](/usc/46/53501.md?p=9) meets national security requirements and approve the replacement.

## Source credit

(Added Pub. L. 116–92, div. C, title XXXV, § 3521(a), Dec. 20, 2019, 133 Stat. 1994.)