(a) Operation of Vessel.— An operating agreement under this chapter shall require that, during the period a vessel is operating under the agreement—
(A)shall be operated exclusively in the foreign commerce or in mixed foreign commerce and domestic trade allowed under a registry endorsement issued under section
12111 of this title; and
(B)shall not otherwise be operated in the coastwise trade; and
(2)the vessel shall be documented under chapter
121 of this title.
(b) Annual Payments by Secretary.—
(1) In general.— An operating agreement under this chapter shall require, subject to the availability of appropriations, that the Secretary make a payment each fiscal year to the contractor in accordance with section
(2) Operating agreement is obligation of united states government.— An operating agreement under this chapter constitutes a contractual obligation of the United States Government to pay the amounts provided for in the agreement to the extent of actual appropriations.
(c) Documentation Requirement.— Each vessel covered by an operating agreement (including an agreement terminated under section
53104(c)(2)) shall remain documented under chapter
121 of this title, until the date the operating agreement would terminate according to its terms.
(d) National Security Requirements.—
(1) In general.— A contractor with respect to an operating agreement (including an agreement terminated under section
53104(c)(2)) shall continue to be bound by the provisions of section
53107 until the date the operating agreement would terminate according to its terms.
(2) Emergency preparedness agreement.— All terms and conditions of an Emergency Preparedness Agreement entered into under section
53107 shall remain in effect until the date the operating agreement would terminate according to its terms, except that the terms of such Emergency Preparedness Agreement may be modified by the mutual consent of the contractor, the Secretary of Transportation, and the Secretary of Defense.
(e) Transfer of Operating Agreements.— A contractor under an operating agreement may transfer the agreement (including all rights and obligations under the operating agreement) to any person that is eligible to enter into the operating agreement under this chapter if the Secretary and the Secretary of Defense determine that the transfer is in the best interests of the United States. A transaction shall not be considered a transfer of an operating agreement if the same legal entity with the same vessels remains the contracting party under the operating agreement.
(f) Replacement Vessels.— A contractor may replace a vessel under an operating agreement with another vessel that is eligible to be included in the Fleet under section
53102(b), if the Secretary, in conjunction with the Secretary of Defense, approves the replacement of the vessel.
Subsec. (e). Pub. L. 109–364designated existing provisions as par. (1), inserted heading and aligned margins in par. (1), and added par. (2).
Subsec. (f). Pub. L. 109–304, § 13(a)(4)(B), substituted “approves” for “approve”.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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