---
kind: "section"
citation: "46 U.S.C. § 53405"
title: "46"
title_heading: "Shipping"
number: "53405"
heading: "Obligations and rights under operating agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53405"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 534 — Tanker Security Fleet"
---

# §53405. 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) covered by the [agreement](/usc/46/53201.md?p=8) is operating under the [agreement](/usc/46/53201.md?p=8) the [vessel](/usc/46/53501.md?p=9) shall—
  - (1) be operated in the [United States](/usc/46/53101.md?p=10) [foreign commerce](/usc/46/53101.md?p=4), mixed [United States](/usc/46/53101.md?p=10) [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), in foreign-to-[foreign commerce](/usc/46/53101.md?p=4), or under a charter to the [United States](/usc/46/53101.md?p=10);
  - (2) not be operated in the coastwise trade except as described in [paragraph (1)](#a-1); and
  - (3) 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 a payment to the [program participant](/usc/46/53401.md?p=5) in accordance with section 53406.
  - (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 [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 the [operating agreement](/usc/46/53201.md?p=8), including an [agreement](/usc/46/53201.md?p=8) terminated under [section 53404(c)(2)](/usc/46/53404.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 [program participant](/usc/46/53401.md?p=5) with respect to an [operating agreement](/usc/46/53201.md?p=8), including an [agreement](/usc/46/53201.md?p=8) terminated under [section 53404(c)(2)](/usc/46/53404.md?p=c-2), shall continue to be bound by the provisions of [section 53407](/usc/46/53407.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 53407](/usc/46/53407.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 [program participant](/usc/46/53401.md?p=5), 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 [program participant](/usc/46/53401.md?p=5) may transfer an [operating agreement](/usc/46/53201.md?p=8) (including all rights and [obligations](/usc/46/53701.md?p=9) under the [agreement](/usc/46/53201.md?p=8)) to any [person](/usc/46/53101.md?p=6) that is eligible to enter into that [operating agreement](/usc/46/53201.md?p=8) under this chapter, if the [Secretary](/usc/46/53101.md?p=8) of Transportation 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).
- (f) **Replacement of Vessels Covered by Agreements.—** A [program participant](/usc/46/53401.md?p=5) may replace the [vessel](/usc/46/53501.md?p=9) 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 53402(b)](/usc/46/53402.md?p=b), if the [Secretary](/usc/46/53101.md?p=8) of Transportation, in coordination with the [Secretary](/usc/46/53101.md?p=8) of Defense, approves the replacement of the [vessel](/usc/46/53501.md?p=9). No court shall have jurisdiction to review a decision by the [Secretary](/usc/46/53101.md?p=8) of Transportation or the [Secretary](/usc/46/53101.md?p=8) of Defense pertaining to the replacement of a [vessel](/usc/46/53501.md?p=9) under this section.

## Source credit

(Added Pub. L. 116–283, div. C, title XXXV, § 3511(a), Jan. 1, 2021, 134 Stat. 4414.)