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46 U.S.C. § 53104 — Effectiveness of operating agreements
Federal law — U.S. Code and appendices · legal_authorities
**(a) Effectiveness, Generally.—** The Secretary may enter into an operating agreement under this chapter for fiscal year 2006. Except as provided in subsection (b), the agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each subsequent fiscal year through the end of fiscal year 2040.
**(b) Vessels Under Charter to United States.—** Unless an earlier date is requested by the applicant, the effective date for an operating agreement with respect to a vessel that is, on the date of entry into an operating agreement, on charter to the United States Government, other than a charter pursuant to an Emergency Preparedness Agreement under section 53107, shall be the expiration or termination date of the Government charter covering the vessel, or any earlier date the vessel is withdrawn from that charter.
**(c) Termination.—**
(1) **Termination by secretary.—** — If the contractor with respect to an operating agreement materially fails to comply with the terms of the agreement—
(A) the Secretary shall notify the contractor and provide a reasonable opportunity to comply with the operating agreement;
(B) the Secretary shall terminate the operating agreement if the contractor fails to achieve such compliance; and
(C) upon such termination, any funds obligated by the agreement shall be available to the Secretary to carry out this chapter.
(2) **Early termination by contractor, generally.—** — An operating agreement under this chapter shall terminate on a date specified by the contractor if the contractor notifies the Secretary, by not later than 60 days before the effective date of the termination, that the contractor intends to terminate the agreement.
**(d) Nonrenewal for Lack of Funds.—** If
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Source location: Title 46, Chapter 531, § 53104; chapter-531-maritime-security-fleet.md
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**(a) Effectiveness, Generally.—** The Secretary may enter into an operating agreement under this chapter for fiscal year 2006. Except as provided in subsection (b), the agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each subsequent fiscal year through the end of fiscal year 2040.
**(b) Vessels Under Charter to United States.—** Unless an earlier date is requested by the applicant, the effective date for an operating agreement with respect to a vessel that is, on the date of entry into an operating agreement, on charter to the United States Government, other than a charter pursuant to an Emergency Preparedness Agreement under section 53107, shall be the expiration or termination date of the Government charter covering the vessel, or any earlier date the vessel is withdrawn from that charter.
**(c) Termination.—**
(1) **Termination by secretary.—** — If the contractor with respect to an operating agreement materially fails to comply with the terms of the agreement—
(A) the Secretary shall notify the contractor and provide a reasonable opportunity to comply with the operating agreement;
(B) the Secretary shall terminate the operating agreement if the contractor fails to achieve such compliance; and
(C) upon such termination, any funds obligated by the agreement shall be available to the Secretary to carry out this chapter.
(2) **Early termination by contractor, generally.—** — An operating agreement under this chapter shall terminate on a date specified by the contractor if the contractor notifies the Secretary, by not later than 60 days before the effective date of the termination, that the contractor intends to terminate the agreement.
**(d) Nonrenewal for Lack of Funds.—** If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives that operating agreements authorized under this chapter for which sufficient funds are not available will not be renewed for that fiscal year if sufficient funds are not appropriated by the 60th day of that fiscal year.
**(e) Release of Vessels From Obligations.—** If funds are not appropriated for payments under an operating agreement under this chapter for any fiscal year by the 60th day of that fiscal year, then—
(1) each vessel covered by the operating agreement is thereby released from any further obligation under the operating agreement;
(2) the owner or operator of the vessel may transfer and register such vessel under a foreign registry that is acceptable to the Secretary of Transportation and the Secretary of Defense, notwithstanding [section 56101 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section56101&num=0&edition=prelim); and
(3) if chapter 563 of this title is applicable to such vessel after registration of the vessel under such a registry, then the vessel is available to be requisitioned by the Secretary of Transportation pursuant to chapter 563.
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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
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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 403
TITLE 46—SHIPPING
§ 53104
Fleet, that the person that is the owner or oper-
ator of the vessel for purposes of section 53102(c)
enter into an operating agreement with the Sec-
retary under this section.
(b) EXTENSION OF EXISTING OPERATING AGREE-
MENTS.—
(1) OFFER TO EXTEND.—Not later than 60 days
after the date of enactment of this paragraph,
the Secretary shall offer, to an existing con-
tractor, to extend, through September 30, 2040,
an operating agreement that is in existence on
the date of enactment of this paragraph. The
terms and conditions of the extended oper-
ating agreement shall include terms and con-
ditions authorized under this chapter, as
amended from time to time.
(2) TIME LIMIT.—An existing contractor shall
have not later than 120 days after the date the
Secretary offers to extend an operating agree-
ment to agree to the extended operating
agreement.
(3) SUBSEQUENT AWARD.—The Secretary may
award an operating agreement to an applicant
that is eligible to enter into an operating
agreement for fiscal years 2016 through 2040 if
the existing contractor does not agree to the
extended operating agreement under para-
graph (2).
(c) PROCEDURE FOR AWARDING NEW OPERATING
AGREEMENTS.—The Secretary may enter into a
new operating agreement with an applicant that
meets the requirements of section 53102(c) (for
vessels that meet the qualifications of section
53102(b)) on the basis of priority for vessel type
established by military requirements of the Sec-
retary of Defense. The Secretary shall allow an
applicant at least 30 days to submit an applica-
tion for a new operating agreement. After con-
sideration of military requirements, priority
shall be given to an applicant that is a United
States citizen under section 50501 of this t
Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 53104
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