46 U.S.C. § 53723 — Payments by Secretary or Administrator

Page 456 TITLE 46—SHIPPING § 53723 § 3507(a)(1)(C), (F), into this section by inserting ‘‘or Ad- ministrator’’ after ‘‘Secretary’’ in section catchline and wherever appearing in subsecs. (a) to (c) and ‘‘or Administrator’s’’ after ‘‘Secretary’s’’ in subsecs. (a)(1) and (b)(1)(B). See 2006 Amendment note below and sec- tion 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. Subsec. (d). Pub. L. 110–181, § 3522(a)(10)(B), inserted ‘‘or Administrator’’ after ‘‘Secretary’’ in introductory provisions. 2006—Pub. L. 109–163, § 3507(a)(1)(C), (F), which di- rected the amendment of sections 1273(e) and 1275(b) of the former Appendix to this title from which this sec- tion was derived in part, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Histor- ical and Revision notes above. § 53723. Payments by Secretary or Administrator and issuance of obligations (a) CASH PAYMENT.—Amounts required to be paid by the Secretary or Administrator under section 53721 or 53722 of this title shall be paid in cash. (b) ISSUANCE OF OBLIGATIONS.—If amounts in the appropriate account under section 53717 of this title are not sufficient to make a payment required under section 53721 or 53722 of this title, the Secretary or Administrator may issue obli- gations to the Secretary of the Treasury. The Secretary or Administrator, with the approval of the Secretary of the Treasury, shall prescribe the form, denomination, maturity, and other terms (except the interest rate) of the obliga- tions. The Secretary of the Treasury shall set the interest rate for the obligations, considering the current average market yield on out- standing marketable obligations of the United States Government of comparable maturities during the month before the obligations are issued. (c) PURCHASE OF OBLIGATIONS.—The Secretary of the Treasury shall purchase the obligations issued under this section. To purchase the obli- gations, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale of securities issued under chapter 31 of title 31. The purposes for which securities may be issued under that chapter are extended to in- clude the purchase of obligations under this sub- section. The Secretary of the Treasury may sell obligations purchased under this section. A re- demption, purchase, or sale of the obligations by the Secretary of the Treasury is a public debt transaction of the Government. (d) DEPOSITS AND REDEMPTIONS.—The Sec- retary or Administrator shall deposit amounts borrowed under this section in the appropriate account under section 53717 of this title and make redemptions of the obligations from that account. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1618; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(G), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53723 .......... 46 App.:1275(d). June 29, 1936, ch. 858, title XI, § 1105(d), as added June 23, 1938, ch. 600, § 46, 52 Stat. 972; Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 914; Pub. L. 96–561, title II, § 220(4), Dec. 22, 1980, 94 Stat. 3294; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(e), Aug. 13, 1981, 95 Stat. 752. In subsections (b) and (d), the words ‘‘appropriate ac- count under section 53717 of this title’’ are substituted for ‘‘Federal Ship Financing Fund’’ because the ac- counts under section 53717 replace the Federal Ship Fi- nancing Fund. See the explanation for section 53717. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(G). See 2006 Amendment note below. Subsecs. (a), (b), (d). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(G), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ in section catch- line and wherever appearing in text, except when fol- lowed by ‘‘of the Treasury’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(G), which directed the amendment of section 1275(d) of the former Appen- dix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (a), (b), (d) and Historical and Revision notes above. § 53724. Rights to secured property (a) ACQUISITION OF SECURITY RIGHTS.—When the Secretary or Administrator makes a pay- ment on, or assumes, an obligation under sec- tion 53721 or 53722 of this title, the Secretary or Administrator acquires the rights under the se- curity agreement with the obligor in the secu- rity held by the Secretary or Administrator to guarantee the obligation. (b) USE AND DISPOSITION OF SECURED PROP- ERTY.—Notwithstanding any other law relating to the acquisition, handling, or disposal of prop- erty by the United States Government, the Sec- retary or Administrator has the right, in the Secretary’s or Administrator’s discretion, to complete, reconstruct, recondition, renovate, re- pair, maintain, operate, charter, or sell any property acquired under a security agreement with an obligor, or to place a vessel so acquired in the National Defense Reserve Fleet. The terms of a sale under this subsection shall be as approved by the Secretary or Administrator. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1619; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat. 598.)