2018 US Code
Title 46 - Shipping
Subtitle V - Merchant Marine
Part A - General
Chapter 505 - Other General Provisions
Sec. 50501 - Entities deemed citizens of the United States

(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)—

(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—

(d) Determination of 75 Percent Corporate Interest.—At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if—

(Pub. L. 109–304, §8(b), Oct. 6, 2006, 120 Stat. 1566.)

In subsection (a), the words "and with respect to a corporation under subchapter VI of this chapter, all directors of the corporation are citizens of the United States" in 46 App. U.S.C. 1244(c) are omitted because part A of subchapter VI contains the operating-differential subsidy program which, under 46 App. U.S.C. 1185a, is being phased out, and part B of subchapter VI contains the Maritime Security Fleet program which is being repealed (effective October 1, 2005) and replaced by chapter 531 of title 46 as enacted by the Maritime Security Act of 2003. Thus, subchapter VI is being omitted from the revised title and will instead appear as a note under section 53101. The words "and, in the case of a corporation, partnership, or association operating a vessel on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States the amount of interest required to be owned by a citizen of the United States shall be not less than 75 per centum" in 46 App. U.S.C. 1244(c) are omitted as covered by the 75 percent ownership requirement for operation in the coastwise trade.

In subsection (b)(1), the words "Territory, District, or possession thereof" are omitted because of the definition of "State" in chapter 1 of the revised title.