46 U.S.C. § 57306 — Payment of trade-in allowance
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 155 words · no verdicts yet
This law explains how the government pays out the trade-in allowance for an obsolete vessel. If the trade-in happens at contract time, the allowance is applied to the new vessel's price, usually paid to the builder. If it happens at delivery, the allowance instead goes into the owner's capital construction fund.
(a) Acquisition at Time of Contract. If the obsolete vessel* is traded in when the owner signs the contract to build or buy the new vessel*, the Secretary of Transportation applies the trade-in allowance toward the new vessel's purchase price, instead of paying it directly to the owner. If the new vessel* is being built under this subtitle, the Secretary may apply the allowance toward the required cash payments, on terms the Secretary sets. If the new vessel is not being built under this subtitle, the Secretary instead pays the trade-in allowance to the vessel's builder, credited to the owner's account, at the time the obsolete vessel is acquired.
(b) Acquisition at Time of Delivery. If the obsolete vessel is instead traded in when the new vessel is delivered, the Secretary deposits the trade-in allowance into the owner's capital construction fund.
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.
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.
Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1663
A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.
all 0 arguments · sorted by: best
no arguments yet — make the first case