---
kind: "section"
citation: "46 U.S.C. § 53508"
title: "46"
title_heading: "Shipping"
number: "53508"
heading: "Separate accounts within a fund"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53508"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 535 — Capital Construction Funds"
---

# §53508. Separate accounts within a fund

- (a) **In General.—** A capital [construction](/usc/46/53701.md?p=3) fund shall have three accounts:
  - (1) The capital account.
  - (2) The capital gain account.
  - (3) The ordinary income account.
- (b) **Capital Account.—** The capital account shall consist of—
  - (1) amounts referred to in [section 53505(a)(2) of this title](/usc/46/53505.md?p=a-2);
  - (2) amounts referred to in [section 53505(a)(3) of this title](/usc/46/53505.md?p=a-3), except that portion representing a gain not taken into account because of [section 53507(a)(2) of this title](/usc/46/53507.md?p=a-2);
  - (3) the percentage applicable under section 243(a)(1) of the Internal Revenue Code of 1986 ([26 U.S.C. 243(a)(1)](/usc/26/243.md?p=a-1)) of any dividend received by the fund for which the [person](/usc/46/53101.md?p=6) maintaining the fund would be allowed (were it not for [section 53507(a)(3) of this title](/usc/46/53507.md?p=a-3)) a deduction under [section 243](/usc/26/243.md) of such Code ([26 U.S.C. 243](/usc/26/243.md)); and
  - (4) interest income exempt from taxation under [section 103](/usc/46/103.md) of such Code ([26 U.S.C. 103](/usc/26/103.md)).
- (c) **Capital Gain Account.—** The capital gain account shall consist of—
  - (1) amounts representing capital gains on assets held for more than 6 months and referred to in [section 53505(a)(3)](/usc/46/53505.md?p=a-3) or (4) of this title; minus
  - (2) amounts representing capital losses on assets held in the fund for more than 6 months.
- (d) **Ordinary Income Account.—** The ordinary income account shall consist of—
  - (1) amounts referred to in [section 53505(a)(1) of this title](/usc/46/53505.md?p=a-1);
  - (2)
    - (A) amounts representing capital gains on assets held for not more than 6 months and referred to in [section 53505(a)(3)](/usc/46/53505.md?p=a-3) or (4) of this title; minus
    - (B) amounts representing capital losses on assets held in the fund for not more than 6 months;
  - (3) interest (except tax-exempt interest referred to in [subsection (b)(4)](#b-4)) and other ordinary income (except any dividend referred to in [paragraph (5)](#d-5)) received on assets held in the fund;
  - (4) ordinary income from a transaction described in [section 53505(a)(3) of this title](/usc/46/53505.md?p=a-3); and
  - (5) that portion of any dividend referred to in [subsection (b)(3)](#b-3) not taken into account under [subsection (b)(3)](#b-3).
- (e) **When Losses Allowed.—** Except on termination of a fund, capital losses referred to in subsection [(c)](#c) or [(d)(2)](#d-2) shall be allowed only as an offset to gains referred to in subsection [(c)](#c) or [(d)(2)](#d-2), respectively.

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1595.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53508 | 46 App.:1177(e). | June 29, 1936, ch. 858, title VI, § 607(e), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23–28, 52 Stat. 960; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; July 17, 1952, ch. 939, §§ 17–19, 66 Stat. 764; Pub. L. 85–637, Aug. 14, 1958, 72 Stat. 216; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–45, § 6, May 27, 1961, 75 Stat. 91; Pub. L. 87–271, Sept. 21, 1961, 75 Stat. 570; restated Pub. L. 91–469, § 21(a), Oct. 21, 1970, 84 Stat. 1028; Pub. L. 99–514, title II, § 261(e)(3), (4), Oct. 22, 1986, 100 Stat. 2215. |