---
kind: "section"
citation: "46 U.S.C. § 53207"
title: "46"
title_heading: "Shipping"
number: "53207"
heading: "National security requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53207"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 532 — Cable Security Fleet"
---

# §53207. National security requirements

- (a) **Contingency Agreement Required.—** The [Secretary](/usc/46/53101.md?p=8) shall include in each [Operating Agreement](/usc/46/53201.md?p=8) under this chapter a requirement that the [Contractor](/usc/46/53101.md?p=2) enter into a [Contingency Agreement](/usc/46/53201.md?p=4) with the [Operating Agency](/usc/46/53201.md?p=7). The [Operating Agency](/usc/46/53201.md?p=7) shall negotiate and enter into a [Contingency Agreement](/usc/46/53201.md?p=4) with each [Contractor](/usc/46/53101.md?p=2) as promptly as practicable after the [Contractor](/usc/46/53101.md?p=2) has entered into an [Operating Agreement](/usc/46/53201.md?p=8) under this chapter.
- (b) **Terms of Contingency Agreement.—**
  - (1) **In general.—** A [Contingency Agreement](/usc/46/53201.md?p=4) under this section shall require that a [Contractor](/usc/46/53101.md?p=2) for a [vessel](/usc/46/53501.md?p=9) covered by an [Operating Agreement](/usc/46/53201.md?p=8) under this chapter make the [vessel](/usc/46/53501.md?p=9), including all necessary resources to engage in [Cable Services](/usc/46/53201.md?p=1) required by the [Operating Agency](/usc/46/53201.md?p=7), available upon request by the [Operating Agency](/usc/46/53201.md?p=7).
  - (2) **Terms.—**
    - (A) **In general.—** The basic terms of a [Contingency Agreement](/usc/46/53201.md?p=4) shall be established (subject to [subparagraph (B)](#b-2-B)) by the [Operating Agency](/usc/46/53201.md?p=7).
    - (B) **Additional terms.—** The [Operating Agency](/usc/46/53201.md?p=7) and a [Contractor](/usc/46/53101.md?p=2) may agree to additional or modifying terms appropriate to the [Contractor](/usc/46/53101.md?p=2)’s circumstances.
- (c) **Defense Measures Against Unauthorized Seizures.—**
  - (1) The [Contingency Agreement](/usc/46/53201.md?p=4) shall require that any [vessel](/usc/46/53501.md?p=9) operating under the direction of the [Operating Agency](/usc/46/53201.md?p=7) operating in area that is designated by the [Coast Guard](/usc/46/2101.md?p=2) as an area of high risk of piracy shall be equipped with, at a minimum, appropriate non-lethal defense measures to protect the [vessel](/usc/46/53501.md?p=9) and crew from unauthorized seizure at sea.
  - (2) The [Secretary](/usc/46/53101.md?p=8) of Defense and the [Secretary](/usc/46/53101.md?p=8) of the department in which the [Coast Guard](/usc/46/2101.md?p=2) is operating shall jointly prescribe the non-lethal defense measures that are required under this paragraph.
- (d) **Participation After Expiration of Operating Agreement.—** Except as provided by [section 53205(d)](/usc/46/53205.md?p=d), the [Operating Agency](/usc/46/53201.md?p=7) may not require, through a [Contingency Agreement](/usc/46/53201.md?p=4) or an [Operating Agreement](/usc/46/53201.md?p=8), that a [Contractor](/usc/46/53101.md?p=2) continue to participate in a [Contingency Agreement](/usc/46/53201.md?p=4) after the [Operating Agreement](/usc/46/53201.md?p=8) with the [Contractor](/usc/46/53101.md?p=2) has expired according to its terms or is otherwise no longer in effect.
- (e) **Resources Made Available.—** The resources to be made available in addition to the [vessel](/usc/46/53501.md?p=9) under a [Contingency Agreement](/usc/46/53201.md?p=4) shall include all equipment, personnel, supplies, management services, and other related services as the [Operating Agency](/usc/46/53201.md?p=7) may determine to be necessary to provide the [Cable Services](/usc/46/53201.md?p=1) required by the [Operating Agency](/usc/46/53201.md?p=7).
- (f) **Compensation.—**
  - (1) **In general.—** The [Operating Agency](/usc/46/53201.md?p=7) shall include in each [Contingency Agreement](/usc/46/53201.md?p=4) provisions under which the [Operating Agency](/usc/46/53201.md?p=7) shall pay fair and reasonable compensation for use of the [vessel](/usc/46/53501.md?p=9) and all [Cable Services](/usc/46/53201.md?p=1) provided pursuant to this section and the [Contingency Agreement](/usc/46/53201.md?p=4).
  - (2) **Specific requirements.—** Compensation under this subsection—
    - (A) shall be at the rate specified in the [Contingency Agreement](/usc/46/53201.md?p=4);
    - (B) shall be provided from the time that a [vessel](/usc/46/53501.md?p=9) is required by the [Operating Agency](/usc/46/53201.md?p=7) under the [Contingency Agreement](/usc/46/53201.md?p=4) until the time it is made available by the [Operating Agency](/usc/46/53201.md?p=7) available to reenter [commercial service](/usc/46/2101.md?p=4); and
    - (C) shall be in addition to and shall not in any way reflect amounts payable under section 53206.
- (g) **Liability of the United States for Damages.—**
  - (1) **Limitation on the liability of the u.s.—** Except as otherwise provided by law, the Government shall not be liable for disruption of a [Contractor](/usc/46/53101.md?p=2)’s commercial business or other consequential damages to a [Contractor](/usc/46/53101.md?p=2) arising from the activation of the [Contingency Agreement](/usc/46/53201.md?p=4).
  - (2) **Affirmative defense.—** In any action in any Federal or State court for breach of third-party contract, there shall be available as an affirmative defense that the alleged breach of contract was caused predominantly by action taken to carry out a Contingent [Agreement](/usc/46/53201.md?p=8). Such defense shall not release the party asserting it from any [obligation](/usc/46/53701.md?p=9) under applicable law to mitigate damages to the greatest extent possible.

## Source credit

(Added Pub. L. 116–92, div. C, title XXXV, § 3521(a), Dec. 20, 2019, 133 Stat. 1995.)
