---
kind: "section"
citation: "46 U.S.C. § 53725"
title: "46"
title_heading: "Shipping"
number: "53725"
heading: "Actions against obligor"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53725"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 537 — Loans and Guarantees"
  - "Subchapter II — Default Provisions"
---

# §53725. Actions against obligor

- (a) **In General.—** For a default under a guaranteed [obligation](/usc/46/53701.md?p=9) or related [agreement](/usc/46/53201.md?p=8), the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may take any action against the [obligor](/usc/46/53701.md?p=11) or another liable party that the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) considers necessary to protect the interests of the [United States](/usc/46/53101.md?p=10) Government. A civil action may be brought in the name of the [United States](/usc/46/53101.md?p=10) or the [obligee](/usc/46/53701.md?p=10). The [obligee](/usc/46/53701.md?p=10) shall make available to the Government all records and evidence necessary to prosecute the action.
- (b) **Title, Possession, and Purchase.—**
  - (1) **In general.—** The [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) may—
    - (A) accept a conveyance of title to and possession of property from the [obligor](/usc/46/53701.md?p=11) or another party liable to the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2); and
    - (B) purchase the property for an amount not greater than the unpaid principal amount of the [obligation](/usc/46/53701.md?p=9) and interest thereon.
  - (2) **Payment of excess.—** If, through the sale of property, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) receives an amount of cash greater than the unpaid principal amount of the [obligation](/usc/46/53701.md?p=9), the unpaid interest on the [obligation](/usc/46/53701.md?p=9), and the expenses of collecting those amounts, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) shall pay the excess to the [obligor](/usc/46/53701.md?p=11).

## 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), (b), Jan. 28, 2008, 122 Stat. 598.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53725 | 46 App.:1275(e). | June 29, 1936, ch. 858, title XI, § 1105(e), 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. 915; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(11), Oct. 30, 1984, 98 Stat. 3131. |

In subsection (a), the words “may take any action” are substituted for “shall take such action . . . that, in his discretion, may be required” for clarity and to eliminate unnecessary words.

### 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), 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. 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(e) 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.