---
kind: "range"
citation: "46 U.S.C. §§ 57102–57104"
title: "46"
from: "57102"
to: "57104"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/46/57102..57104"
---

# §57102. Disposition of vessels

- (a) **In General.—** If the Secretary of Transportation determines that a [vessel](/usc/46/115.md) is an [obsolete vessel](/usc/46/57111.md), the Secretary may dispose of such [vessel](/usc/46/115.md) (by sale or by purchase of disposal services).
- (b) **Selling Procedure.—** The sale of a [vessel](/usc/46/115.md) under [subsection (a)](#a) shall be made on a best value basis. The purchaser does not have to be a [citizen of the United States](/usc/46/104.md). The purchaser shall provide a surety bond, with a surety approved by the Secretary, to ensure that the [vessel](/usc/46/115.md) will not be operated in the [foreign trade](/usc/46/109.md?p=a) of the [United States](/usc/46/114.md) at any time within 10 years after the sale, in competition with a [vessel](/usc/46/115.md) owned by a [citizen of the United States](/usc/46/104.md) and documented under the laws of the [United States](/usc/46/114.md).

# §57103. Donation of vessels in the National Defense Reserve Fleet

- (a) **In General.—** The Secretary of Transportation may convey the right, title, and interest of the [United States](/usc/46/114.md) Government in any [vessel](/usc/46/115.md) of the National Defense Reserve Fleet that has been identified by the Secretary as an [obsolete vessel](/usc/46/57111.md), if the recipient—
  - (1) is a non-profit organization, a [State](/usc/46/112.md), or a municipal corporation or political subdivision of a [State](/usc/46/112.md);
  - (2) agrees not to use, or allow others to use, the [vessel](/usc/46/115.md) for commercial transportation purposes;
  - (3) agrees to make the [vessel](/usc/46/115.md) available to the Government whenever the Secretary indicates that it is needed by the Government;
  - (4) agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the [vessel](/usc/46/115.md), except for claims arising from use of the [vessel](/usc/46/115.md) by the Government;
  - (5) has a conveyance plan and a business plan that describes the intended use of the [vessel](/usc/46/115.md), each of which has been submitted to and approved by the Secretary;
  - (6) has provided proof, as determined by the Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of the [vessel](/usc/46/115.md); and
  - (7) agrees that when the recipient no longer requires the [vessel](/usc/46/115.md) for use as described in the business plan required under [paragraph (5)](#a-5)—
    - (A) the recipient will, at the discretion of the Secretary, reconvey the [vessel](/usc/46/115.md) to the Government in good condition except for ordinary wear and tear; or
    - (B) if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the [State](/usc/46/112.md) in which the recipient is incorporated, then—
      - (i) the recipient shall distribute the [vessel](/usc/46/115.md), as an asset of the recipient, to a person that has been determined exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 ([26 U.S.C. 501(c)(3)](/usc/26/501.md?p=c-3)), or to the Federal Government or a [State](/usc/46/112.md) or local government for a public purpose; and
      - (ii) the [vessel](/usc/46/115.md) shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes as the court shall determine, or to such organizations as the court shall determine are organized exclusively for public purposes.
- (b) **Other Equipment.—** At the Secretary’s discretion, additional equipment from other [obsolete vessels](/usc/46/57111.md) of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or modifications.
- (c) **Additional Terms.—** The Secretary may require any additional terms the Secretary considers appropriate.
- (d) **Delivery of Vessel.—** If conveyance is made under this section, the [vessel](/usc/46/115.md) shall be delivered to the recipient at a time and place to be determined by the Secretary. The [vessel](/usc/46/115.md) shall be conveyed in an “as is” condition.
- (e) **Limitations.—** If at any time prior to delivery of the [vessel](/usc/46/115.md) to the recipient, the Secretary determines that a different disposition of the [vessel](/usc/46/115.md) would better serve the interests of the Government, the Secretary shall pursue the more favorable disposition of the [obsolete vessel](/usc/46/57111.md) and shall not be liable for any damages that may result from an intended recipient’s reliance upon a proposed transfer.
- (f) **Reversion.—** The Secretary shall include in any conveyance under this section terms under which all right, title, and interest conveyed by the Secretary shall revert to the Government if the Secretary determines the [vessel](/usc/46/115.md) has been used other than as described in the business plan required under [subsection (a)(5)](#a-5).

# §57104. Acquisition of vessels from sale of obsolete vessels

- (a) **In General.—** The Secretary of Transportation may acquire suitable [documented vessels](/usc/46/106.md) with amounts in the [Vessel](/usc/46/115.md) Operations Revolving Fund derived from the sale of [obsolete vessels](/usc/46/57111.md) in the National Defense Reserve Fleet.
- (b) **Valuation.—** The acquired and [obsolete vessels](/usc/46/57111.md) shall be valued at their scrap value in domestic or foreign markets as of the date of the acquisition for or sale from the Fleet. However, the value assigned to those [vessels](/usc/46/115.md) shall be determined on the same basis, with consideration given to the fair value of the cost of moving the [vessel](/usc/46/115.md) sold from the Fleet to the place of scrapping.
- (c) **Costs Incident to Lay-Up.—** Costs incident to the lay-up of the [vessel](/usc/46/115.md) acquired under this section may be paid from amounts in the Fund.
- (d) **Transfers to Non-Citizens.—** A [vessel](/usc/46/115.md) sold from the Fleet under this section may be scrapped in an approved foreign market without obtaining additional separate approval from the Secretary to transfer the [vessel](/usc/46/115.md) to a person not a [citizen of the United States](/usc/46/104.md).