§53309. Accumulation of deposits — Inbound Citations

Citations to 46 U.S.C. § 53309 as a whole

• 46 U.S.C. § 53310(a)

  Go to provision →
  (a) Sections 53306 and 53309 of this title apply to a deposit in a construction reserve fund only if, within 3 years after the date of the deposit (and any extension under subsection (c))—

  (A) a contract is made for the construction or acquisition of a new vessel or, with the approval of the Secretary of Transportation, for a part interest in a new vessel or for the reconstruction or reconditioning of a new vessel;

  (B) the deposit is expended or obligated for expenditure under that contract;

  (C) at least 12.5 percent of the construction or contract price of the vessel is paid or irrevocably committed for payment; and

  (D) the plans and specifications for the vessel are approved by the Secretary to the extent the Secretary considers necessary; or

  (2) the deposit is expended or obligated for expenditure for the liquidation of existing or subsequently incurred purchase-money indebtedness to a person not a parent company of, or a company affiliated or associated with, the mortgagor on a new vessel.