---
kind: "section"
citation: "46 U.S.C. § 57306"
title: "46"
title_heading: "Shipping"
number: "57306"
heading: "Payment of trade-in allowance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/57306"
units:
  - "Subtitle V — Merchant Marine"
  - "Part F — Government-Owned Merchant Vessels"
  - "Chapter 573 — Vessel Trade-In Program"
---

# §57306. Payment of trade-in allowance

- (a) **Acquisition at Time of Contract.—** If acquisition of an [obsolete vessel](/usc/46/57301.md?p=2) under this chapter occurs when the owner contracts for the [construction](/usc/46/53701.md?p=3) or purchase of the [new vessel](/usc/46/53301.md?p=a-2), the [Secretary](/usc/46/53101.md?p=8) of Transportation shall apply the trade-in allowance to the purchase price of the [new vessel](/usc/46/53301.md?p=a-2) rather than paying it to the owner. If the [new vessel](/usc/46/53301.md?p=a-2) is constructed under this subtitle, the [Secretary](/usc/46/53101.md?p=8) may apply the trade-in allowance to the required cash payments on terms and conditions the [Secretary](/usc/46/53101.md?p=8) may prescribe. If the [new vessel](/usc/46/53301.md?p=a-2) is not constructed under this subtitle, the [Secretary](/usc/46/53101.md?p=8) shall pay the trade-in allowance to the builder of the [vessel](/usc/46/53501.md?p=9) for the account of the owner when the [Secretary](/usc/46/53101.md?p=8) acquires the [obsolete vessel](/usc/46/57301.md?p=2).
- (b) **Acquisition at Time of Delivery.—** If acquisition of the [obsolete vessel](/usc/46/57301.md?p=2) occurs when the [new vessel](/usc/46/53301.md?p=a-2) is delivered to the owner, the [Secretary](/usc/46/53101.md?p=8) shall deposit the trade-in allowance in the owner’s capital [construction](/usc/46/53701.md?p=3) fund.

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 57306 | 46 App.:1160(b) (4th–7th sentences). | June 29, 1936, ch. 858, title V, § 510(b) (4th–7th sentences), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 87–401, subdiv. (1), Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, §§ 12(b), 35(a), Oct. 21, 1970, 84 Stat. 1022, 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161. |

In subsection (b), the words “acquisition of the obsolete vessel occurs” are substituted for “title to the obsolete vessel is acquired” for consistency in the chapter.