--- kind: "section" citation: "46 U.S.C. § 53723" title: "46" title_heading: "Shipping" number: "53723" heading: "Payments by Secretary or Administrator and issuance of obligations" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/46/53723" units: - "Subtitle V — Merchant Marine" - "Part C — Financial Assistance Programs" - "Chapter 537 — Loans and Guarantees" - "Subchapter II — Default Provisions" --- # §53723. Payments by Secretary or Administrator and issuance of obligations - (a) **Cash Payment.—** Amounts required to be paid by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) under section [53721](/usc/46/53721.md) or [53722](/usc/46/53722.md) of this title shall be paid in cash. - (b) **Issuance of Obligations.—** If amounts in the appropriate account under [section 53717 of this title](/usc/46/53717.md) are not sufficient to make a payment required under section [53721](/usc/46/53721.md) or [53722](/usc/46/53722.md) of this title, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may issue [obligations](/usc/46/53701.md?p=9) to the [Secretary](/usc/46/53101.md?p=8) of the Treasury. The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2), with the approval of the [Secretary](/usc/46/53101.md?p=8) of the Treasury, shall prescribe the form, denomination, maturity, and other terms (except the interest rate) of the [obligations](/usc/46/53701.md?p=9). The [Secretary](/usc/46/53101.md?p=8) of the Treasury shall set the interest rate for the [obligations](/usc/46/53701.md?p=9), considering the current average market yield on outstanding marketable [obligations](/usc/46/53701.md?p=9) of the [United States](/usc/46/53101.md?p=10) Government of comparable maturities during the month before the [obligations](/usc/46/53701.md?p=9) are issued. - (c) **Purchase of Obligations.—** The [Secretary](/usc/46/53101.md?p=8) of the Treasury shall purchase the [obligations](/usc/46/53701.md?p=9) issued under this section. To purchase the [obligations](/usc/46/53701.md?p=9), the [Secretary](/usc/46/53101.md?p=8) of the Treasury may use as a public debt transaction the proceeds from the sale of securities issued under chapter 31 of title 31. The purposes for which securities may be issued under that chapter are extended to include the purchase of [obligations](/usc/46/53701.md?p=9) under this subsection. The [Secretary](/usc/46/53101.md?p=8) of the Treasury may sell [obligations](/usc/46/53701.md?p=9) purchased under this section. A redemption, purchase, or sale of the [obligations](/usc/46/53701.md?p=9) by the [Secretary](/usc/46/53101.md?p=8) of the Treasury is a public debt transaction of the Government. - (d) **Deposits and Redemptions.—** The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) shall deposit amounts borrowed under this section in the appropriate account under [section 53717 of this title](/usc/46/53717.md) and make redemptions of the [obligations](/usc/46/53701.md?p=9) from that account. ## Source credit (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1618; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(G), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.) ## Notes | Historical and Revision Notes | | | | --- | --- | --- | | Revised
Section | Source (U.S. Code) | Source (Statutes at Large) | | 53723 | 46 App.:1275(d). | June 29, 1936, ch. 858, title XI, § 1105(d), as added June 23, 1938, ch. 600, § 46, 52 Stat. 972; Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 914; Pub. L. 96–561, title II, § 220(4), Dec. 22, 1980, 94 Stat. 3294; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(e), Aug. 13, 1981, 95 Stat. 752. | In subsections (b) and (d), the words “appropriate account under section 53717 of this title” are substituted for “Federal Ship Financing Fund” because the accounts under section 53717 replace the Federal Ship Financing Fund. See the explanation for section 53717. ### Editorial Notes ### Amendments 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(G). See 2006 Amendment note below. Subsecs. (a), (b), (d). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(G), into this section by inserting “or Administrator” after “Secretary” in section catchline and wherever appearing in text, except when followed by “of the Treasury”. 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)(G), which directed the amendment of section 1275(d) 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 note for subsecs. (a), (b), (d) and Historical and Revision notes above.