---
kind: "section"
citation: "46 U.S.C. § 53716"
title: "46"
title_heading: "Shipping"
number: "53716"
heading: "Deposit fund"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53716"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 537 — Loans and Guarantees"
  - "Subchapter I — General"
---

# §53716. Deposit fund

- (a) **In General.—** There is a deposit fund in the Treasury for purposes of this section. The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2), in accordance with an [agreement](/usc/46/53201.md?p=8) under [subsection (b)](#b), may deposit into and hold in the fund cash belonging to an [obligor](/usc/46/53701.md?p=11) to serve as collateral for a guarantee made under this chapter with respect to the [obligor](/usc/46/53701.md?p=11).
- (b) **Agreement.—** The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) and an [obligor](/usc/46/53701.md?p=11) shall make a reserve fund or other collateral account [agreement](/usc/46/53201.md?p=8) to govern the deposit, withdrawal, retention, use, and reinvestment of cash of the [obligor](/usc/46/53701.md?p=11) held in the fund. The [agreement](/usc/46/53201.md?p=8) shall contain—
  - (1) terms and conditions required by this section;
  - (2) terms that grant to the [United States](/usc/46/53101.md?p=10) Government a security interest in all amounts deposited into the fund; and
  - (3) any additional terms considered by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) to be necessary to protect fully the interests of the Government.
- (c) **Investment.—** The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may invest and reinvest any part of the amounts in the fund in [obligations](/usc/46/53701.md?p=9) of the Government with maturities such that amounts in the fund will be available as required for purposes of the [agreement](/usc/46/53201.md?p=8) under [subsection (b)](#b). Cash balances in the fund in excess of current requirements shall be maintained in a form of uninvested funds, and the [Secretary](/usc/46/53101.md?p=8) of the Treasury shall pay interest on these funds.
- (d) **Withdrawals.—**
  - (1) **In general.—** Cash deposited into the fund may not be withdrawn without the consent of the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2).
  - (2) **Use of income.—** Subject to [paragraph (3)](#d-3), the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may pay any income earned on cash of an [obligor](/usc/46/53701.md?p=11) deposited into the fund in accordance with the [agreement](/usc/46/53201.md?p=8) with the [obligor](/usc/46/53701.md?p=11) under [subsection (b)](#b).
  - (3) **Retention against default.—** The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may retain and offset any or all of the cash of an [obligor](/usc/46/53701.md?p=11) in the fund, and any income realized thereon, as part of the [Secretary](/usc/46/53101.md?p=8)’s or [Administrator](/usc/46/53701.md?p=2)’s recovery against the [obligor](/usc/46/53701.md?p=11) in case of a default by the [obligor](/usc/46/53701.md?p=11) on an [obligation](/usc/46/53701.md?p=9).

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1616; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(H), (3), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat. 598.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53716 | 46 App.:1279b. | June 29, 1936, ch. 858, title XI, § 1109, as added Pub. L. 107–107, title XXXV, § 3503, Dec. 28, 2001, 115 Stat. 1392. |

In subsection (a), the word “established” is omitted for consistency with other codified titles of the United States Code.

### Editorial Notes

### Amendments

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(H), (3). See 2006 Amendment note below.

Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(H), (3), into this section by inserting “or Administrator” after “Secretary” wherever appearing, except the second place appearing in subsec. (c), and inserting “or Administrator’s” after “Secretary’s” in subsec. (d)(3). 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)(H), (3), which directed the amendment of section 1279b 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.