---
kind: "section"
citation: "46 U.S.C. § 53724"
title: "46"
title_heading: "Shipping"
number: "53724"
heading: "Rights to secured property"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53724"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 537 — Loans and Guarantees"
  - "Subchapter II — Default Provisions"
---

# §53724. Rights to secured property

- (a) **Acquisition of Security Rights.—** When the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) makes a payment on, or assumes, an [obligation](/usc/46/53701.md?p=9) 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) acquires the rights under the security [agreement](/usc/46/53201.md?p=8) with the [obligor](/usc/46/53701.md?p=11) in the security held by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) to guarantee the [obligation](/usc/46/53701.md?p=9).
- (b) **Use and Disposition of Secured Property.—** Notwithstanding any other law relating to the acquisition, handling, or disposal of property by the [United States](/usc/46/53101.md?p=10) Government, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) has the right, in the [Secretary](/usc/46/53101.md?p=8)’s or [Administrator](/usc/46/53701.md?p=2)’s discretion, to complete, reconstruct, recondition, renovate, repair, maintain, operate, charter, or sell any property acquired under a security [agreement](/usc/46/53201.md?p=8) with an [obligor](/usc/46/53701.md?p=11), or to place a [vessel](/usc/46/53501.md?p=9) so acquired in the National Defense Reserve [Fleet](/usc/46/53101.md?p=3). The terms of a sale under this subsection shall be as approved by the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2).

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1619; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(F), 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) |
| 53724 | 46 App.:1275(c). | June 29, 1936, ch. 858, title XI, § 1105(c), as added June 23, 1938, ch. 600, § 46, 52 Stat. 971; 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. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(10), Oct. 30, 1984, 98 Stat. 3131. |

### Editorial Notes

### Amendments

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(F). 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)(F), into this section by inserting “or Administrator” after “Secretary” wherever appearing and, in subsec. (b), “or Administrator’s” after “Secretary’s”. 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)(F), which directed the amendment of section 1275(c) 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.