§57301. Definitions — Inbound Citations

Citations to §57301(2)

• 46 U.S.C. § 57100(g)

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  (g) A vessel in the National Defense Reserve Fleet determined by the Maritime Administration to be an obsolete vessel shall remain a vessel within the meaning of that term in section 3 of title 1, United States Code, and subject to the rights and responsibilities of a vessel under admiralty law at least until such time as the vessel is delivered to a dismantling facility or is disposed of otherwise from the National Defense Reserve Fleet.
• 46 U.S.C. § 57102(a)

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  (a) If the Secretary of Transportation determines that a vessel is an obsolete vessel, the Secretary may dispose of such vessel (by sale or by purchase of disposal services).
• 46 U.S.C. § 57103(a)

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  (a) The Secretary of Transportation may convey the right, title, and interest of the United States Government in any vessel of the National Defense Reserve Fleet that has been identified by the Secretary as an obsolete vessel, if the recipient—

  (1) is a non-profit organization, a State, or a municipal corporation or political subdivision of a State;

  (2) agrees not to use, or allow others to use, the vessel for commercial transportation purposes;

  (3) agrees to make the vessel 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, except for claims arising from use of the vessel by the Government;

  (5) has a conveyance plan and a business plan that describes the intended use of the vessel, 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; and

  (7) agrees that when the recipient no longer requires the vessel for use as described in the business plan required under paragraph (5)—

  (A) the recipient will, at the discretion of the Secretary, reconvey the vessel 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 in which the recipient is incorporated, then—

  (i) the recipient shall distribute the vessel, 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)), or to the Federal Government or a State or local government for a public purpose; and

  (ii) the vessel 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.
• 46 U.S.C. § 57103(b)

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  (b) At the Secretary’s discretion, additional equipment from other obsolete vessels of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or modifications.
• 46 U.S.C. § 57103(e)

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  (e) If at any time prior to delivery of the vessel to the recipient, the Secretary determines that a different disposition of the vessel would better serve the interests of the Government, the Secretary shall pursue the more favorable disposition of the obsolete vessel and shall not be liable for any damages that may result from an intended recipient’s reliance upon a proposed transfer.
• 46 U.S.C. § 57104(a)

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  (a) The Secretary of Transportation may acquire suitable documented vessels with amounts in the Vessel Operations Revolving Fund derived from the sale of obsolete vessels in the National Defense Reserve Fleet.
• 46 U.S.C. § 57104(b)

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  (b) The acquired and obsolete vessels 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 shall be determined on the same basis, with consideration given to the fair value of the cost of moving the vessel sold from the Fleet to the place of scrapping.
• 46 U.S.C. § 57111

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  In this chapter, the term “obsolete vessel” means a vessel that—
• 46 U.S.C. § 57302

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  To promote the construction of new, safe, and efficient vessels to carry the domestic and foreign waterborne commerce of the United States, the Secretary of Transportation may acquire an obsolete vessel in exchange for an allowance of credit toward the cost of construction or purchase of a new vessel as provided in this chapter.
• 46 U.S.C. § 57303(a)

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  (a) The utility value of a new vessel to be acquired under this chapter for operation in the domestic or foreign commerce of the United States may not be substantially less than that of the obsolete vessel acquired in exchange under this chapter.
• 46 U.S.C. § 57303(b)

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  (b) If the Secretary of Transportation finds that the new vessel will have a utility value at least equal to that of the obsolete vessel, the new vessel may be of lesser gross tonnage than the obsolete vessel. However, the gross tonnage of the new vessel must be at least one-third the gross tonnage of the obsolete vessel.
• 46 U.S.C. § 57304

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  At the option of the owner, the acquisition of an obsolete vessel under this chapter shall occur—
• 46 U.S.C. § 57305(a)

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  (a) The Secretary of Transportation shall determine the trade-in allowance for an obsolete vessel at the time of acquisition of the vessel. The allowance shall be the fair value of the vessel. In determining the value, the Secretary shall consider—

  (1) the scrap value of the obsolete vessel in American and foreign markets;

  (2) the depreciated value based on a 20-year or 25-year life, whichever applies to the obsolete vessel; and

  (3) the market value of the obsolete vessel for operation in world commerce or in the domestic or foreign commerce of the United States.
• 46 U.S.C. § 57305(a)(1)

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  (1) the scrap value of the obsolete vessel in American and foreign markets;
• 46 U.S.C. § 57305(a)(2)

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  (2) the depreciated value based on a 20-year or 25-year life, whichever applies to the obsolete vessel; and
• 46 U.S.C. § 57305(a)(3)

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  (3) the market value of the obsolete vessel for operation in world commerce or in the domestic or foreign commerce of the United States.
• 46 U.S.C. § 57305(b)

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  (b) If acquisition of the obsolete vessel occurs when the owner contracts for the construction of the new vessel, and the owner uses the obsolete vessel during the period of construction of the new vessel, the Secretary shall reduce the trade-in allowance by an amount representing the fair value of that use. The Secretary shall establish the rate for use of the obsolete vessel when the contract for construction of the new vessel is made.
• 46 U.S.C. § 57306(a)

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  (a) If acquisition of an obsolete vessel under this chapter occurs when the owner contracts for the construction or purchase of the new vessel, the Secretary of Transportation shall apply the trade-in allowance to the purchase price of the new vessel rather than paying it to the owner. If the new vessel is constructed under this subtitle, the Secretary may apply the trade-in allowance to the required cash payments on terms and conditions the Secretary may prescribe. If the new vessel is not constructed under this subtitle, the Secretary shall pay the trade-in allowance to the builder of the vessel for the account of the owner when the Secretary acquires the obsolete vessel.
• 46 U.S.C. § 57306(b)

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  (b) If acquisition of the obsolete vessel occurs when the new vessel is delivered to the owner, the Secretary shall deposit the trade-in allowance in the owner’s capital construction fund.
• 46 U.S.C. § 57307

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  The owner of an obsolete vessel does not recognize a gain under the Federal income tax laws when the vessel is transferred to the Secretary of Transportation in exchange for a trade-in allowance under this chapter. The basis of the new vessel acquired with the allowance is the same as the basis of the obsolete vessel—
• 46 U.S.C. § 57307(1)

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  (1) increased by the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel; and
• 46 U.S.C. § 57308

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  An obsolete vessel acquired under this chapter that is or becomes at least 25 years old may not be used for commercial operation. However, the vessel may be used—