2016 US Code
Title 46 - Shipping
Subtitle V - Merchant Marine
Part A - General
Chapter 503 - Administrative
Sec. 50305 - Appointment of trustee or receiver and operation of vessels

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Citation 46 U.S.C. § 50305 (2016)
Section Name §50305. Appointment of trustee or receiver and operation of vessels
Section Text

(a) Appointment of Trustees and Receivers.—

(1) Appointment of secretary.—In a proceeding in a court of the United States in which a trustee or receiver may be appointed for a corporation operating a vessel of United States registry between the United States and a foreign country, on which the United States Government holds a mortgage, the court may appoint the Secretary of Transportation as the sole trustee or receiver (subject to the direction of the court) if—

(A) the court finds that the appointment will—

(i) inure to the advantage of the estate and the parties in interest; and

(ii) tend to carry out the purposes of this subtitle; and


(B) the Secretary expressly consents to the appointment.


(2) Appointment of other person.—The appointment of another person as trustee or receiver without a hearing becomes effective when ratified by the Secretary, but the Secretary may demand a hearing.


(b) Operation of Vessels.—

(1) In general.—If the court is unwilling to allow the trustee or receiver to operate the vessel in foreign commerce without financial aid from the Government pending termination of the proceeding, and the Secretary certifies to the court that the continued operation of the vessel is essential to the foreign commerce of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a managing agent or operator employed by the Secretary. The Secretary must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The Secretary also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver.

(2) Payment of operating losses and other amounts.—The Secretary has no claim against the corporation, its estate, or its assets for operating losses paid by the Secretary, but the Secretary may pay amounts for depreciation the Secretary considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the Secretary resulting from the operation of the vessel.

(3) Deemed operation by government.—A vessel operated by the Secretary under this subsection is deemed to be a vessel operated by the United States under chapter 309 of this title.

Source Credit

(Pub. L. 109–304, §8(b), Oct. 6, 2006, 120 Stat. 1565.)

Editorial Notes
Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
50305 46 App.:1247. June 29, 1936, ch. 858, title IX, §908, as added Pub. L. 95–598, title III, §334, Nov. 6, 1978, 92 Stat. 2680; Pub. L. 97–31, §12(134), Aug. 6, 1981, 95 Stat. 165.

In subsection (a)(1), before subparagraph (A), the words "Notwithstanding any other provision of law" and "bankruptcy, equity, or admiralty" are omitted as unnecessary.

In subsection (a)(2), the words "but the Secretary may demand a hearing" are substituted for "unless the Secretary shall deem a hearing necessary" for clarity.

In subsection (b)(1), the words "subject to the orders of the court" and "comply with the terms imposed by the court" are omitted as unnecessary.

In subsection (b)(2), the words "operating losses paid by the Secretary" are substituted for "the amount of such payments" for clarity.

In subsection (b)(3), the words "vessel operated by the United States" are substituted for "vessel of the United States" for clarity and consistency with chapter 309.

Publication Title United States Code, 2012 Edition, Supplement 4, Title 46 - SHIPPING
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 46 - SHIPPING
Subtitle V - Merchant Marine
Part A - General
CHAPTER 503 - ADMINISTRATIVE
Sec. 50305 - Appointment of trustee or receiver and operation of vessels
Contains section 50305
Date 2016
Laws In Effect As Of Date January 6, 2017
Positive Law Yes
Disposition standard
Statutes at Large References 92 Stat. 2680
95 Stat. 165
120 Stat. 1565
Public Law References Public Law 95-598, Public Law 97-31, Public Law 109-304
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