---
kind: "section"
citation: "46 U.S.C. § 53701"
title: "46"
title_heading: "Shipping"
number: "53701"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53701"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 537 — Loans and Guarantees"
  - "Subchapter I — General"
---

# §53701. Definitions


In this chapter:

- (1) **Actual cost.—** The term “actual cost” means the sum of—
  - (A) all amounts paid by or for the account of the [obligor](#11) as of the date on which a determination is made under [section 53715(d)(1) of this title](/usc/46/53715.md?p=d-1); and
  - (B) all amounts that the [Secretary](/usc/46/53101.md?p=8) or [Administrator](#2) reasonably estimates the [obligor](#11) will become obligated to pay from time to time thereafter, for the [construction](#3), [reconstruction](#3), or [reconditioning](#3) of the [vessel](/usc/46/53501.md?p=9), including guarantee fees that will become payable under [section 53714 of this title](/usc/46/53714.md) in connection with all [obligations](#9) issued for [construction](#3), [reconstruction](#3), or [reconditioning](#3) of the [vessel](/usc/46/53501.md?p=9) or equipment to be delivered, and all [obligations](#9) issued for the delivered [vessel](/usc/46/53501.md?p=9) or equipment.
- (2) **Administrator.—** The term “Administrator” means the Administrator of the Maritime Administration.
- (3) **Construction, reconstruction, and reconditioning.—** The terms “construction”, “reconstruction”, and “reconditioning” include designing, inspecting, outfitting, and equipping.
- (4) **Depreciated actual cost.—** The term “depreciated actual cost” of a [vessel](/usc/46/53501.md?p=9) means—
  - (A) if the [vessel](/usc/46/53501.md?p=9) was not reconstructed or reconditioned, the [actual cost](#1) of the [vessel](/usc/46/53501.md?p=9) depreciated on a straight line basis over the useful life of the [vessel](/usc/46/53501.md?p=9) as determined by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](#2), not to exceed 25 years from the date of delivery by the builder; or
  - (B) if the [vessel](/usc/46/53501.md?p=9) was reconstructed or reconditioned, the sum of—
    - (i) the [actual cost](#1) of the [vessel](/usc/46/53501.md?p=9) depreciated on a straight line basis from the date of delivery by the builder to the date of the [reconstruction](#3) or [reconditioning](#3), using the original useful life of the [vessel](/usc/46/53501.md?p=9), and from the date of the [reconstruction](#3) or [reconditioning](#3), using a useful life of the [vessel](/usc/46/53501.md?p=9) determined by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](#2); and
    - (ii) any amount paid or obligated to be paid for the [reconstruction](#3) or [reconditioning](#3), depreciated on a straight line basis using a useful life of the [vessel](/usc/46/53501.md?p=9) determined by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](#2).
- (5) **Fishery facility.—**
  - (A) **In general.—** Subject to [subparagraph (B)](#5-B), the term “fishery facility” means—
    - (i) for operations on land—
      - (I) a structure or appurtenance thereto designed for the unloading and receiving from [vessels](/usc/46/53501.md?p=9), the processing, the holding pending processing, the distribution after processing, or the holding pending distribution, of [fish](/usc/46/2101.md?p=11) from a fishery;
      - (II) the land necessary for the structure or appurtenance; and
      - (III) equipment that is for use with the structure or appurtenance and that is necessary for performing a function referred to in [subclause (I)](#5-A-i-I);
    - (ii) for operations not on land, a [vessel](/usc/46/53501.md?p=9) built in the [United States](/usc/46/53101.md?p=10) and used for, equipped to be used for, or of a type normally used for, the processing of [fish](/usc/46/2101.md?p=11); or
    - (iii) for aquaculture, including operations on land or elsewhere—
      - (I) a structure or appurtenance thereto designed for aquaculture;
      - (II) the land necessary for the structure or appurtenance;
      - (III) equipment that is for use with the structure or appurtenance and that is necessary for performing a function referred to in [subclause (I)](#5-A-iii-I); and
      - (IV) a [vessel](/usc/46/53501.md?p=9) built in the [United States](/usc/46/53101.md?p=10) and used for, equipped to be used for, or of a type normally used for, aquaculture.
  - (B) **Required ownership.—** Under [subparagraph (A)](#5-A), the structure, appurtenance, land, equipment, or [vessel](/usc/46/53501.md?p=9) must be owned by—
    - (i) an individual who is a citizen of the [United States](/usc/46/53101.md?p=10); or
    - (ii) an entity that is a citizen of the [United States](/usc/46/53101.md?p=10) under [section 50501 of this title](/usc/46/50501.md) and that is at least 75 percent owned (as determined under that section) by citizens of the [United States](/usc/46/53101.md?p=10).
- (6) **Fishing vessel.—** The term “fishing vessel” has the meaning given that term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act ([16 U.S.C. 1802](/usc/16/1802.md)), and any reference in this chapter to a [vessel](/usc/46/53501.md?p=9) designed principally for commercial use in the fishing trade or industry is deemed to be a reference to a fishing vessel.
- (7) **Historical uses.—** The term “historical uses” includes—
  - (A) refurbishing, repairing, rebuilding, or replacing equipment on a [fishing vessel](#6), without materially increasing harvesting capacity;
  - (B) purchasing a used [fishing vessel](#6);
  - (C) purchasing, constructing, expanding, or [reconditioning](#3) a [fishery facility](#5-A);
  - (D) refinancing existing debt;
  - (E) reducing fishing capacity; and
  - (F) making upgrades to a [fishing vessel](#6), including upgrades in technology, gear, or equipment, that improve—
    - (i) collection and reporting of fishery-dependent data;
    - (ii) bycatch reduction or avoidance;
    - (iii) gear selectivity;
    - (iv) adverse impacts caused by fishing gear; or
    - (v) safety.
- (8) **Mortgage.—** The term “mortgage” includes—
  - (A) a preferred [mortgage](#8) as defined in [section 31301 of this title](/usc/46/31301.md); and
  - (B) a [mortgage](#8) on a [vessel](/usc/46/53501.md?p=9) that will become a preferred [mortgage](#8) when filed or recorded under [chapter 313](/usc/46/chstIII/ch313.md) of this title.
- (9) **Obligation.—** The term “obligation” means an instrument of indebtedness issued for a purpose described in [section 53706 of this title](/usc/46/53706.md), except—
  - (A) an [obligation](#9) issued by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](#2) under [section 53723 of this title](/usc/46/53723.md); and
  - (B) an [obligation](#9) eligible for investment of funds under section [53715(f)](/usc/46/53715.md?p=f) or [53717](/usc/46/53717.md) of this title.
- (10) **Obligee.—** The term “obligee” means the holder of an [obligation](#9).
- (11) **Obligor.—** The term “obligor” means a party primarily liable for payment of the principal of or interest on an [obligation](#9).
- (12) **Ocean thermal energy conversion facility or plantship.—** The term “ocean thermal energy conversion facility or plantship” means an at-sea facility or [vessel](/usc/46/53501.md?p=9), whether mobile, floating unmoored, moored, or standing on the seabed, that uses temperature differences in ocean water to produce electricity or another form of energy capable of being used directly to perform work, and includes—
  - (A) equipment installed on the facility or [vessel](/usc/46/53501.md?p=9) to use the electricity or other form of energy to produce, process, refine, or manufacture a product;
  - (B) a cable or pipeline used to deliver the electricity, freshwater, or product to shore; and
  - (C) other associated equipment and appurtenances of the facility or [vessel](/usc/46/53501.md?p=9) to the extent they are located seaward of the high water mark.
- (13) **Secretary.—** The term “[Secretary](/usc/46/53101.md?p=8)” means the [Secretary](/usc/46/53101.md?p=8) of Commerce with respect to [fishing vessels](#6) and [fishery facilities](#5-A).
- (14) **Vessel.—** The term “[vessel](/usc/46/53501.md?p=9)” means any type of [vessel](/usc/46/53501.md?p=9), whether in existence or under [construction](#3), including—
  - (A) a [cargo](/usc/46/53901.md?p=2) [vessel](/usc/46/53501.md?p=9);
  - (B) a [passenger vessel](/usc/46/2101.md?p=33);
  - (C) a combination [cargo](/usc/46/53901.md?p=2) and [passenger vessel](/usc/46/2101.md?p=33);
  - (D) a [tanker](/usc/46/2101.md?p=52);
  - (E) a tug or towboat;
  - (F) a barge;
  - (G) a dredge;
  - (H) a floating drydock with a capacity of at least 35,000 lifting tons and a beam of at least 125 feet between the wing walls;
  - (I) an [oceanographic research vessel](/usc/46/2101.md?p=26);
  - (J) an instruction [vessel](/usc/46/53501.md?p=9);
  - (K) a pollution treatment, abatement, or control [vessel](/usc/46/53501.md?p=9);
  - (L) a [fishing vessel](#6) whose ownership meets the citizenship requirements under [section 50501 of this title](/usc/46/50501.md) for documenting [vessels](/usc/46/53501.md?p=9) to operate in the coastwise trade; and
  - (M) an [ocean thermal energy conversion facility or plantship](#12) that is or will be documented under the laws of the [United States](/usc/46/53101.md?p=10).
- (15) **Vessel of national interest.—** The term “Vessel of National Interest” means a [vessel](/usc/46/53501.md?p=9) deemed to be of national interest that meets characteristics determined by the [Administrator](#2), in consultation with the [Secretary](/usc/46/53101.md?p=8) of Defense, the [Secretary](/usc/46/53101.md?p=8) of the Department in which the [Coast Guard](/usc/46/2101.md?p=2) is operating when it is not operating as a service in the Department of the Navy, or the heads of other Federal agencies, as described in [section 53703(d)](/usc/46/53703.md?p=d).

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1601; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(A), (b)(1), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(1), (10)(B), (b), Jan. 28, 2008, 122 Stat. 596, 598; Pub. L. 114–120, title III, § 302(a)(1), Feb. 8, 2016, 130 Stat. 51; Pub. L. 116–92, div. C, title XXXV, § 3506(a), Dec. 20, 2019, 133 Stat. 1970.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53701(1) | 46 App.:1271(f). | June 29, 1936, ch. 858, title XI, § 1101, as added June 23, 1938, ch. 600, § 46, 52 Stat. 969; Sept. 3, 1954, ch. 1265, § 1, 68 Stat. 1267; Aug. 7, 1956, ch. 1026, § 1(a), (b), 70 Stat. 1087; Pub. L. 86–127, § 1(1), July 31, 1959, 73 Stat. 272; Pub. L. 86–685, § 1, Sept. 2, 1960, 74 Stat. 733; Pub. L. 87–303, § 2, Sept. 26, 1961, 75 Stat. 661; Pub. L. 91–469, § 29, Oct. 21, 1970, 84 Stat. 1035; Pub. L. 92–507, § 1, Oct. 19, 1972, 86 Stat. 909; Pub. L. 96–320, title II, § 202(a), Aug. 3, 1980, 94 Stat. 992; Pub. L. 96–561, title II, § 220(1), Dec. 22, 1980, 94 Stat. 3291; Pub. L. 97–31, § 12(135), Aug. 6, 1981, 95 Stat. 165; Pub. L. 100–710, title I, § 104(d), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 102–567, title III, § 304, Oct. 29, 1992, 106 Stat. 4283; Pub. L. 103–160, title XIII, § 1356(1), 1357(b), Nov. 30, 1993, 107 Stat. 1812, 1815; Pub. L. 104–208, title I, § 101 [title II, § 211(b)], Sept. 30, 1996, 110 Stat. 3009–41; Pub. L. 104–239, § 11(1), Oct. 8, 1996, 110 Stat. 3134; Pub. L. 108–136, title XXXV, § 3521(b), Nov. 24, 2003, 117 Stat. 1799. |
| 53701(2) | 46 App.:1271(h). |  |
| 53701(3) | 46 App.:1271(g). |  |
| 53701(4) | 46 App.:1271(o). |  |
| 53701(5) | 46 App.:1271(j), (k), (m). |  |
| 53701(6) | 46 App.:1271(l). |  |
| 53701(7) | 46 App.:1271(a). |  |
| 53701(8) | 46 App.:1271(c). |  |
| 53701(9) | 46 App.:1271(e). |  |
| 53701(10) | 46 App.:1271(d). |  |
| 53701(11) | 46 App.:1271(i). |  |
| 53701(12) | 46 App.:1271(n). |  |
| 53701(13) | 46 App.:1271(b). |  |

In paragraph (2), the words “but shall not be limited to” are omitted as unnecessary.

In paragraph (4)(B), the words “become or remain” are substituted for “be placed under or continued to be” for clarity.

In paragraph (5)(B)(i), the words “individual who is a citizen of the United States” are substituted for “individual who is a citizen or national of the United States or a citizen of the Northern Mariana Islands” in 46 App. U.S.C. 1271(k) because of the definition of “citizen of the United States” in chapter 1 of the revised title. Citizens of the Northern Mariana Islands became citizens or non-citizen nationals of the United States (either of which is a “citizen of the United States” as defined in chapter 1 of the revised title) when the Covenant establishing the Commonwealth of the Northern Mariana Islands became effective on November 4, 1986.

In paragraph (5)(B)(ii), the words “corporation, partnership, association, or other” are omitted as suplus [sic]. The words “the term ‘State’ as used therein includes any State, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, or any other Commonwealth, territory, or possession of the United States” in 46 App. U.S.C. 1271(k) are omitted as unnecessary because of the definitions of “State” and “United States” in chapter 1 of the revised title. The definition of “United States” in 46 App. U.S.C. 1271(m) is omitted as unnecessary because of the definition of “United States” in chapter 1. The words “and nationals of the United States or citizens of the Northern Mariana Islands shall be treated as citizens of the United States in meeting such ownership requirement” are omitted as unnecessary because of the definition of “citizen of the United States” in chapter 1 of the revised title.

In paragraph (8), before subparagraph (A), the words “instrument of indebtedness” are substituted for “note, bond, debenture, or other evidence of indebtedness” to eliminate unnecessary words. In subparagraph (B), the reference to section 53717 is substituted for the reference to 46 App. U.S.C. 1272 because the accounts under section 53717 replace the Federal Ship Financing Fund. See the explanation for section 53717.

### Editorial Notes

### Amendments

2019—Pars. (5) to (15). Pub. L. 116–92 redesignated pars. (6) to (15) as (5) to (14), respectively, added a new par. (15), and struck out former par. (5) which defined “eligible export vessel”.

2016—Pars. (8) to (15). Pub. L. 114–120 added par. (8) and redesignated former pars. (8) to (14) as (9) to (15), respectively.

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(A), (b)(1). See 2006 Amendment note below.

Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(A), into this section by inserting “or Administrator” after “Secretary” wherever appearing in pars. (1)(B), (4), and (9)(A). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.

Pub. L. 110–181, § 3522(a)(1), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(b)(1), into this section by adding pars. (2) and (13), redesignating former pars. (2) to (13) as (3) to (14), respectively, and striking out former par. (13), which defined “Secretary”. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.

2006—Pub. L. 109–163, § 3507(a)(1)(A), (b)(1), which directed the amendment of section 1271 of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above.