LegalFix
Sign In

§ 53509. Qualified withdrawals

46 U.S.C. § 53509 (N/A)
Copy with citation
Copy as parenthetical citation

Subject to subsection (b), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for—

(1) the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or

(2) the payment of the principal on indebtedness incurred in the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel.

Except as provided in regulations prescribed by the Secretary, subsection (a) applies to a barge or container only if it is constructed in the United States.

Under joint regulations, if the Secretary determines that a substantial obligation under an agreement is not being fulfilled, the Secretary, after notice and opportunity for a hearing to the person maintaining the fund, may treat any amount in the fund as an amount withdrawn from the fund in a nonqualified withdrawal.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1596.)

Previous Section
§ 53508. Separate accounts within a fund
Next Section
§ 53510. Tax treatment of qualified withdrawals and basis of property