2018 US Code
Title 46 - Shipping
Subtitle V - Merchant Marine
Part C - Financial Assistance Programs
Chapter 535 - Capital Construction Funds
Sec. 53506 - Investment and fiduciary requirements
| 46 U.S.C. § 53506 (2018) | ||||||
| §53506. Investment and fiduciary requirements | ||||||
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(a) In General.—Amounts in a capital construction fund shall be kept in the depository specified in the agreement and shall be subject to trustee and other fiduciary requirements prescribed by the Secretary. Except as provided in subsection (b), amounts in the fund may be invested only in interest-bearing securities approved by the Secretary. (b) Stock Investments.— (1) In general.—With the approval of the Secretary, an agreed percentage (but not more than 60 percent) of the assets of the fund may be invested in the stock of domestic corporations that— (A) is fully listed and registered on an exchange registered with the Securities and Exchange Commission as a national securities exchange; and (B) would be acquired by a prudent investor seeking a reasonable income and the preservation of capital. (2) Preferred stock.—The preferred stock of a corporation is deemed to satisfy the requirements of this subsection, even though it may not be registered and listed because it is nonvoting stock, if the common stock of the corporation satisfies the requirements and the preferred stock otherwise would satisfy the requirements. (c) Maintaining Agreed Percentage.—If at any time the fair market value of the stock in the fund is more than the agreed percentage of the assets in the fund, any subsequent investment of amounts deposited in the fund, and any subsequent withdrawal from the fund, shall be made in a way that tends to restore the fair market value of the stock to not more than the agreed percentage. |
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(Pub. L. 109–304, §8(c), Oct. 6, 2006, 120 Stat. 1594.) |
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In subsection (b)(1)(B), the words "prudent investor" are substituted for "prudent men of discretion and intelligence in such matters" to eliminate unnecessary words. |
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| United States Code, 2018 Edition, Title 46 - SHIPPING | ||||||
| Bills and Statutes | ||||||
| United States Code | ||||||
| Y 1.2/5: | ||||||
| Title 46 - SHIPPING Subtitle V - Merchant Marine Part C - Financial Assistance Programs CHAPTER 535 - CAPITAL CONSTRUCTION FUNDS Sec. 53506 - Investment and fiduciary requirements |
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| section 53506 | ||||||
| 2018 | ||||||
| January 14, 2019 | ||||||
| Yes | ||||||
| standard | ||||||
| 49 Stat. 2005 52 Stat. 960 53 Stat. 1185 66 Stat. 764 72 Stat. 216 74 Stat. 216 75 Stat. 91, 570 84 Stat. 1027 95 Stat. 162 120 Stat. 1594 |
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| Public Law 85-637, Public Law 86-518, Public Law 87-45, Public Law 87-271, Public Law 91-469, Public Law 97-31, Public Law 109-304 |
