46 U.S.C. § 53105 — Obligations and rights under operating agreements

(a) Operation. During the agreement, the vessel must (1)(A) operate only in foreign commerce, or, except under (2), in mixed foreign commerce and domestic trade allowed by a section 12111 registry endorsement, and (B) not otherwise operate in coastwise trade; (2) if first covered after enactment of the National Defense Authorization Act for Fiscal Year 2018 and not a subsection (f) replacement, not transport cargo between United States points or their territories either directly or through a foreign port; and (3) be documented under chapter 121. (b) Payments. (1) Subject to appropriations, the Secretary must pay the contractor each fiscal year under section 53106. (2) The agreement is a United States contractual obligation to pay its stated amounts, but only to the extent actually appropriated. (c) Each covered vessel, including one under an agreement ended under section 53104(c)(2), must remain chapter 121 documented until the date the agreement would normally end. (d) The contractor remains bound by section 53107 until that date. Its Emergency Preparedness Agreement terms also remain, but may be changed by mutual consent of the contractor and both Secretaries. (e) The contractor may transfer the agreement and all rights and duties to an eligible person if both Secretaries find the transfer in the United States’ best interests. A transaction is not a transfer if the same legal entity and vessels remain the contracting party. (f) The contractor may replace the vessel with another section 53102(b)-eligible vessel if the Secretary, together with Defense, approves.