46 USC 53509 - Qualified withdrawals

U.S Code last checked for updates: Apr 27, 2024

§ 53509.

Qualified withdrawals

(a)

In General.—

Subject to subsection (b), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for—

(1)

the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or

(2)

the payment of the principal on indebtedness incurred in the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel.

(b)

Barges and Containers.—

Except as provided in regulations prescribed by the Secretary, subsection (a) applies to a barge or container only if it is constructed in the United States.

(c)

Treatment as Nonqualified Withdrawal.—

Under joint regulations, if the Secretary determines that a substantial obligation under an agreement is not being fulfilled, the Secretary, after notice and opportunity for a hearing to the person maintaining the fund, may treat any amount in the fund as an amount withdrawn from the fund in a nonqualified withdrawal.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1596.)

cite as: 46 USC 53509