---
kind: "section"
citation: "46 U.S.C. § 58102"
title: "46"
title_heading: "Shipping"
number: "58102"
heading: "Default on payment or maintenance of reserves"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/58102"
units:
  - "Subtitle V — Merchant Marine"
  - "Part G — Restrictions and Penalties"
  - "Chapter 581 — Restrictions and Penalties"
---

# §58102. Default on payment or maintenance of reserves


The [Secretary](/usc/46/53101.md?p=8) of Transportation may supervise the number and compensation of all officers and employees of a [contractor](/usc/46/53101.md?p=2) under the operating-differential subsidy program or a charterer under [chapter 575](/usc/46/chstV/ptF/ch575.md) of this title, receiving an operating-differential subsidy, if the [contractor](/usc/46/53101.md?p=2) or charterer—

- (1) is in default on a [mortgage](/usc/46/53701.md?p=8), note, purchase contract, or other [obligation](/usc/46/53701.md?p=9) to the [Secretary](/usc/46/53101.md?p=8); or
- (2) has not maintained, in a manner satisfactory to the [Secretary](/usc/46/53101.md?p=8), all of the reserves provided for in this subtitle.

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1671.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 58102 | 46 App.:1223(b). | June 29, 1936, ch. 858, title VIII, § 805(b), 49 Stat. 2012; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. |

The words “contractor under the operating-differential subsidy program or a charterer under chapter 575 of this title, receiving an operating-differential subsidy” are substituted for “contractor under part A of subchapter VI of this chapter or subchapter VII of this chapter receiving an operating-differential subsidy” for the reasons explained under section 58101.