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46 U.S.C. § 12119 — Owners engaged primarily in leasing or financing transactions
Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions.—** In this section:
(1) **Affiliate.—** — The term “affiliate” means, with respect to any person, any other person that is—
(i) directly or indirectly controlled by, under common control with, or controlling that person; or
(ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service.
(2) **Cargo.—** — The term “cargo” does not include cargo to which title is held for non-commercial reasons and primarily for the purpose of evading the requirements of subsection (c)(3).
(3) **Oil.—** — The term “oil” has the meaning given that term in [section 2101(28) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101/28&num=0&edition=prelim).
(4) **Passive investment.—** — The term “passive investment” means an investment in which neither the investor nor any affiliate of the investor is involved in, or has the power to be involved in, the formulation, determination, or direction of any activity or function concerning the management, use, or operation of the asset that is the subject of the investment.
(5) **Qualified proprietary cargo.—** — The term “qualified proprietary cargo” means—
(A) oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is beneficially owned by the person that submits to the Secretary an application or annual certification under subsection (c)(3), or by an affiliate of that person, immediately before, during, or immediately after the cargo is carried in coastwise trade on a vessel owned by that person;
(B) oil, petroleum products, petrochemicals, or liquefied natural gas cargo not beneficially owned by the person that submits to the Secr
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Source file: Laws/federal/codes/united-states-code/title-46/section-12119-owners-engaged-primarily-in-leasing-or-financing-transactions--4152d345ca.md
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Source location: Title 46, Chapter 121, § 12119; chapter-121-documentation-of-vessels.md
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**(a) Definitions.—** In this section:
(1) **Affiliate.—** — The term “affiliate” means, with respect to any person, any other person that is—
(i) directly or indirectly controlled by, under common control with, or controlling that person; or
(ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service.
(2) **Cargo.—** — The term “cargo” does not include cargo to which title is held for non-commercial reasons and primarily for the purpose of evading the requirements of subsection (c)(3).
(3) **Oil.—** — The term “oil” has the meaning given that term in [section 2101(28) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101/28&num=0&edition=prelim).
(4) **Passive investment.—** — The term “passive investment” means an investment in which neither the investor nor any affiliate of the investor is involved in, or has the power to be involved in, the formulation, determination, or direction of any activity or function concerning the management, use, or operation of the asset that is the subject of the investment.
(5) **Qualified proprietary cargo.—** — The term “qualified proprietary cargo” means—
(A) oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is beneficially owned by the person that submits to the Secretary an application or annual certification under subsection (c)(3), or by an affiliate of that person, immediately before, during, or immediately after the cargo is carried in coastwise trade on a vessel owned by that person;
(B) oil, petroleum products, petrochemicals, or liquefied natural gas cargo not beneficially owned by the person that submits to the Secretary an application or an annual certification under subsection (c)(3), or by an affiliate of that person, but which is carried in coastwise trade by a vessel owned by that person and which is part of an arrangement in which vessels owned by that person and at least one other person are operated collectively as one fleet, to the extent that an equal amount of oil, petroleum products, petrochemicals, or liquefied natural gas cargo beneficially owned by that person, or by an affiliate of that person, is carried in coastwise trade on one or more other vessels, not owned by that person, or by an affiliate of that person, if the other vessel or vessels are also part of the same arrangement;
(C) in the case of a towing vessel associated with a non-self-propelled tank vessel where both vessels function as a single self-propelled vessel, oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is beneficially owned by the person that owns both the towing vessel and the non-self-propelled tank vessel, or any United States affiliate of that person, immediately before, during, or immediately after the cargo is carried in coastwise trade on either of those vessels; or
(D) any oil, petroleum products, petrochemicals, or liquefied natural gas cargo carried on any vessel that is either a self-propelled tank vessel having a length of at least 210 meters or a tank vessel that is a liquefied natural gas carrier that—
(i) was delivered by the builder of the vessel to the owner of the vessel after December 31, 1999; and
(ii) was purchased by a person for the purpose, and with the reasonable expectation, of transporting on the vessel liquefied natural gas or unrefined petroleum beneficially owned by the owner of the vessel, or an affiliate of the owner, from Alaska to the continental United States.
(6) **United states affiliate.—** — The term “United States affiliate” means, with respect to any person, an affiliate the principal place of business of which is located in the United States.
**(b) Requirements.—** A coastwise endorsement may be issued for a vessel if—
(1) the vessel satisfies the requirements for a coastwise endorsement, except for the ownership requirement otherwise applicable without regard to this section;
(2) the person that owns the vessel (or, if the vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar arrangement) meets the requirements of subsection (c);
(3) the vessel is under a demise charter to a person that certifies to the Secretary that the person is a citizen of the United States under [section 50501 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section50501&num=0&edition=prelim) for engaging in the coastwise trade; and
(4) the demise charter is for a period of at least 3 years or a shorter period as may be prescribed by the Secretary.
**(c) Ownership Certification.—**
(1) **In general.—** — A person meets the requirements of this subsection if the person transmits to the Secretary each year the certification required by paragraph (2) or (3) with respect to a vessel.
(2) **Investment certification.—** — To meet the certification requirement of this paragraph, a person shall certify that it—
(A) is a leasing company, bank, or financial institution;
(B) owns, or holds the beneficial interest in, the vessel solely as a passive investment;
(C) does not operate any vessel for hire and is not an affiliate of any person that operates any vessel for hire; and
(D) is independent from, and not an affiliate of, any charterer of the vessel or any other person that has the right, directly or indirectly, to control or direct the movement or use of the vessel.
(3) **Certain tank vessels.—**
(A) *In general.—* — To meet the certification requirement of this paragraph, a person shall certify that—
(i) the aggregate book value of the vessels owned by the person and United States affiliates of the person does not exceed 10 percent of the aggregate book value of all assets owned by the person and its United States affiliates;
(ii) not more than 10 percent of the aggregate revenues of the person and its United States affiliates is derived from the ownership, operation, or management of vessels;
(iii) at least 70 percent of the aggregate tonnage of all cargo carried by all vessels owned by the person and its United States affiliates and documented with a coastwise endorsement is qualified proprietary cargo;
(iv) any cargo other than qualified proprietary cargo carried by all vessels owned by the person and its United States affiliates and documented with a coastwise endorsement consists of oil, petroleum products, petrochemicals, or liquified natural gas;
(v) no vessel owned by the person or any of its United States affiliates and documented with a coastwise endorsement carries molten sulphur; and
(vi) the person owned one or more vessels documented under this section as of August 9, 2004.
(B) *Application only to certain vessels.—* — A person may make a certification under this paragraph only with respect to—
(i) a tank vessel having a tonnage of at least 6,000 gross tons, as measured under [section 14502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section14502&num=0&edition=prelim) (or an alternative tonnage measured under [section 14302 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section14302&num=0&edition=prelim) as prescribed by the Secretary under [section 14104 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section14104&num=0&edition=prelim)); or
(ii) a towing vessel associated with a non-self-propelled tank vessel that meets the requirements of clause (i), where both vessels function as a single self-propelled vessel.
**(d) Filing of Demise Charter.—** The demise charter and any amendments to the charter shall be filed with the certification required by subsection (b)(3) or within 10 days after filing an amendment to the charter. The charter and amendments shall be made available to the public.
**(e) Continuation of Endorsement After Termination of Charter.—** When a charter required by subsection (b)(3) is terminated for default by the charterer, the Secretary may continue the coastwise endorsement for not more than 6 months on terms and conditions the Secretary may prescribe.
**(f) Deemed Owned by Citizens.—** A vessel satisfying the requirements of this section is deemed to be owned only by citizens of the United States under sections 12103 and 50501 of this title.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Secretary shall measure a vessel to which this chapter applies in the way provided by this chapter and the Convention.
**(b)** A vessel measured under this chapter may not be required to be measured under another law.
**(c)** Unless otherwise provided by law, the measurement of a vessel under this chapter applies to a law of the United States whose applicability depends on a vessel’s tonnage, if that law—
(1) becomes effective after July 18, 1994; or
(2) is in effect before July 19, 1994, is not enumerated in [section 14305 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section14305&num=0&edition=prelim), and is identified by the Secretary by regulation as a law to which this chapter applies.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 14302
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Federal law — U.S. Code and appendices · legal_authorities
The Secretary shall measure a vessel to which this chapter applies in the way provided by this chapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 14502
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** The Secretary shall publish periodically a list of all documented vessels and information about those vessels that the Secretary considers pertinent or useful. The list shall contain a notation clearly indicating all vessels classed by the American Bureau of Shipping.
**(b) Vessels for Cable Laying, Maintenance, and Repair.—**
(1) **In general.—** — The Secretary of Transportation shall develop, maintain, and periodically update an inventory of vessels that are documented under this chapter, are at least 200 feet in length, and have the capability to lay, maintain, or repair a submarine cable, without regard to whether a particular vessel is classed as a cable ship or cable vessel.
(2) **Information to be included.—** — For each vessel listed in the inventory, the Secretary of Transportation shall include in the inventory—
(A) the name, length, beam, depth, and other distinguishing characteristics of the vessel;
(B) the abilities and limitations of the vessel with respect to laying, maintaining, and repairing a submarine cable; and
(C) the name and address of the person to whom inquiries regarding the vessel may be made.
(3) **Publication.—** — The Secretary of Transportation shall publish in the Federal Register an updated inventory every 6 months.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 12138
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States.
**(b) Additional Requirements for Corporations.—** In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)—
(1) it is incorporated under the laws of the United States or a State;
(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and
(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum.
**(c) Determination of Controlling Corporate Interest.—** The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if—
(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) the majority of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
**(d) Determination of 75 Percent Corporate Inter
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 50501
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** When the application of a law of the United States to a vessel depends on the vessel’s tonnage, the vessel shall be measured under this part.
**(b)** If a statute allows for an alternate tonnage to be prescribed under this section, the Secretary may prescribe it by regulation. Any such regulation shall be considered to be an interpretive regulation for purposes of [section 553 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section553&num=0&edition=prelim). Until an alternate tonnage is prescribed, the statutorily established tonnage shall apply to vessels measured under chapter 143 or chapter 145 of this title.
**(c)** The head of each Federal agency shall ensure that regulations issued by the agency that specify particular tonnages comply with the alternate tonnages implemented by the Secretary.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 14104
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Restrictions.—**
(1) **In General.—** — Except as otherwise provided in this section, [section 12119 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12119&num=0&edition=prelim), or section 611 of the Merchant Marine Act, 1936, a person may not, without the approval of the Secretary of Transportation—
(A) sell, lease, charter, deliver, or in any other manner transfer, or agree to sell, lease, charter, deliver, or in any other manner transfer, to a person not a citizen of the United States, an interest in or control of—
(i) a documented vessel owned by a citizen of the United States; or
(ii) a vessel last documented under the laws of the United States; or
(B) place under foreign registry, or operate under the authority of a foreign country, a documented vessel or a vessel last documented under the laws of the United States.
(2) **Exceptions.—** — Paragraph (1)(A) does not apply to a vessel that has been operated only for pleasure or only as a fishing vessel, fish processing vessel, or fish tender vessel (as defined in [section 2101 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101&num=0&edition=prelim)).
**(b) Approval Before Documentation.—** To promote financing with respect to a vessel to be documented under chapter 121 of this title, the Secretary may grant approval under subsection (a) before the vessel is documented.
**(c) Exceptions.—** Notwithstanding any other provision of this subtitle, the Merchant Marine Act, 1936, or any contract with the Secretary made under this subtitle or that Act, a person may place a vessel under foreign registry without the approval of the Secretary if—
(1)
(A) the Secretary, in conjunction with the Secretary of Defens
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 56101
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Federal law — U.S. Code and appendices · legal_authorities
Page 215
TITLE 46—SHIPPING
§ 12119
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1500.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
12118(a)(1) ..
46 App.:883–1 (1st
par. words
through cl. (e)
less citizenship,
4th par. 1st sen-
tence).
June 5, 1920, ch. 250, § 27A, as
added Pub. L. 85–902, Sept.
2, 1958, 72 Stat. 1736; Pub.
L. 104–88, title III, § 321(2),
Dec. 29, 1995, 109 Stat. 950;
Pub. L. 104–324, title VII,
§ 706, Oct. 19, 1996, 110
Stat. 3934.
12118(a)(2),
(3).
46 App.:883–1 (2d
par., 4th par. 2d
sentence).
12118(b) ......
46 App.:883–1 (1st
par. related to
citizenship).
12118(c) ......
46 App.:883–1 (3d
par. words before
5th comma).
12118(d)(1) ..
46 App.:883–1 (3d
par. words after
5th comma).
12118(d)(2) ..
46 App.:883–1 (1st
par. words after
cl. (e)).
12118(e) ......
46 App.:883–1 (last
par.).
12118(f) .......
46 App.:883–1 (4th
par. 3d–6th sen-
tences).
In this section, the word ‘‘Secretary’’ is substituted
for ‘‘Secretary of the Treasury’’, thereby incorporating
the definition of ‘‘Secretary’’ in section 2101 of title 46.
The functions of the Secretary of the Treasury relating
to the Coast Guard previously were transferred to the
Secretary of Transportation by section 6(b) of the De-
partment of Transportation Act (Pub. L. 89–670, Oct. 15,
1966, 80 Stat. 938). The Coast Guard and the functions of
the Secretary of Transportation relating to the Coast
Guard were again transferred to the Department of
Homeland Security by section 888(b) of the Homeland
Security Act of 2002 (Pub. L. 107–296, Nov. 25, 2002, 116
Stat. 2135).
In subsection (a)(1), the words ‘‘seeking hereunder to
document a vessel under the laws of the United States
or to operate a vessel exempt from
Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 12119
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.