§ 57506. Minimum selling price of vessels

448 words·~2 min read·/usc/title-46/section-57506

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)In General.— A vessel constructed under this subtitle or the Merchant Marine Act, 1936, may not be sold by the Secretary of Transportation for less than the price specified in this section.

(b)Operation in Foreign Trade.— If the vessel is to be operated in foreign trade, the minimum price is the estimated foreign construction cost (exclusive of national defense features) determined as of the date the construction contract is executed, less depreciation under subsection (d).

(c)Operation in Domestic Trade.— If the vessel is to be operated in domestic trade, the minimum price is the cost of construction in the United States (exclusive of national defense features), less depreciation under subsection (d).

(d)Depreciation.— Depreciation under subsections

(b)and

(c)shall be based on—

(1)a 25-year life for dry-cargo and passenger vessels; and

(2)a 20-year life for tankers and other bulk liquid carrier vessels.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)

Subsection

(d)is substituted for “less depreciation based on a twenty-five year life” because of section 9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which provided that “Nothing in any amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C. 1195] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.”

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