SUBCHAPTER II—CHARTERS
§57511. Demise charters
A charter by the Secretary of Transportation under this chapter shall demise the vessel to the charterer subject to all usual conditions contained in a bareboat charter. The charter shall be for a term the Secretary considers to be in the best interest of the United States Government and the merchant marine.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57511 | 46 App.:1201. | June 29, 1936, ch. 858, title VII, §711, |
The words "for a term the Secretary considers to be" are substituted for "until January 1, 1940, shall be for terms of three years or less as the Secretary of Transportation may decide: Provided, That after January 1, 1940, charters may be executed by the Secretary of Transportation for such terms as the experience gained by the Secretary of Transportation shall indicate are" to eliminate unnecessary and obsolete words.
§57512. Competitive bidding
(a)
(b)
(1) the number, type, and tonnage of the vessels being offered for bareboat charter for operation as a steamship line on a designated trade route;
(2) the minimum number of sailings required;
(3) the length of time of the charter;
(4) the right of the Secretary to reject all bids; and
(5) other information the Secretary considers necessary for the information of prospective bidders.
(c)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57512(a) | 46 App.:1196(a) (1st sentence). | June 29, 1936, ch. 858, title VII, §706(a), (b) (1st sentence related to announcement), |
| 57512(b) | 46 App.:1196(a) (last sentence), (b) (1st sentence related to announcement). | |
| 57512(c) | 46 App.:1193(c) (related to chartering). | June 29, 1936, ch. 858, title VII, §703(c) (related to chartering), |
Subsection (b)(4) is substituted for "announce in his advertisements for bids that the Secretary of Transportation reserves the right to, reject any and all bids submitted" in 46 App. U.S.C. 1196(b) to improve the organization.
In subsection (c), the words "Bids required under this section" are substituted for "All bids required by the Secretary of Transportation . . . and for the chartering of the Secretary's vessels hereinafter provided for" to eliminate unnecessary words. The word "hour" is omitted as covered by "time".
§57513. Minimum bid
The Secretary of Transportation shall reject any bid for the charter under this subchapter of a vessel constructed under this subtitle or the Merchant Marine Act, 1936, if the charter hire offered is lower than the minimum charter hire would be if the vessel were chartered under
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57513 | 46 App.:1196(b) (last sentence). | June 29, 1936, ch. 858, title VII, §706(b) (last sentence), as added Aug. 4, 1939, ch. 417, §11(b), |
Editorial Notes
References in Text
The Merchant Marine Act, 1936, referred to in text, is act June 29, 1936, ch. 858,
§57514. Qualifications of bidders
(a)
(1) the bidder's financial resources, credit standing, and practical experience in operating vessels; and
(2) other factors a prudent business person would consider in entering into a transaction involving a large capital investment.
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57514 | 46 App.:1203. | June 29, 1936, ch. 858, title VII, §713, |
§57515. Awarding of charters
(a)
(b)
(1) award the charter to the next highest bidder; or
(2) reject all bids and either readvertise the line or operate the line until conditions appear more favorable to reoffer the line for private charter.
(c)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57515 | 46 App.:1196(b) (1st sentence related to authority). | June 29, 1936, ch. 858, title VII, §§706(b) (1st sentence related to authority), 707, |
| 46 App.:1197. |
In subsection (a), the words "if the Secretary considers the charter hire offered too low" are substituted for "if, in the Secretary's discretion, the charter hire offered is deemed too low" to eliminate unnecessary words. The words "lacks the qualifications required by
§57516. Operating-differential subsidies
If the Secretary of Transportation considers it necessary, the Secretary may make a contract with a charterer of a vessel owned by the Secretary for payment of an operating-differential subsidy, on the same terms and conditions, and subject to the same limitations and restrictions, as otherwise provided with respect to payment of operating-differential subsidies to operators of privately-owned vessels.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57516 | 46 App.:1198. | June 29, 1936, ch. 858, title VII, §708, |
§57517. Recovery of excess profits
(a)
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57517 | 46 App.:1199. | June 29, 1936, ch. 858, title VII, §709, |
§57518. Performance bond
The Secretary of Transportation shall require a charterer of a vessel of the Secretary to deposit with the Secretary an undertaking, with approved sureties, in such amount as the Secretary may require as security for the faithful performance of the terms of the charter, including indemnity against liens on the chartered vessel.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57518 | 46 App.:1200. | June 29, 1936, ch. 858, title VII, §710, |
§57519. Insurance
A charter under this chapter shall require the charterer to carry, at the charterer's expense, insurance on the chartered vessel covering all marine and port risks, protection and indemnity risks, and all other hazards and liabilities, adequate to cover damages claimed against and losses sustained by the chartered vessel arising during the term of the charter. The insurance shall be in such form, in such amount, and with such companies as the Secretary of Transportation may require. In accordance with law, any of the insurance risks may be underwritten by the Secretary.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57519 | 46 App.:1202(a). | June 29, 1936, ch. 858, title VII, §712(a), |
§57520. Vessel maintenance
(a)
(1) keep the chartered vessel in good repair and efficient operating condition; and
(2) make any repairs required by the Secretary of Transportation.
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57520 | 46 App.:1202(b), (c). | June 29, 1936, ch. 858, title VII, §712(b), (c), |
§57521. Termination of charter during national emergency
A charter under this chapter shall provide that during a national emergency proclaimed by the President or a period for which the President has proclaimed that the security of the national defense makes it advisable, the Secretary of Transportation may terminate the charter without cost to the United States Government on such notice to the charterer as the President determines.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 57521 | 46 App.:1202(d). | June 29, 1936, ch. 858, title VII, §712(d), |
§57522. Books and records, balance sheets, and inspection and auditing
Every contract executed by the Secretary of Transportation under this chapter shall contain provisions requiring (1) that, the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to keep its books, records, and accounts, relating to the maintenance, operation, and servicing of the vessels, services, routes, and lines covered by the contract, in such form and under such regulations as may be prescribed by the Secretary of Transportation; (2) that the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to file, upon notice from the Secretary of Transportation, balance sheets, profit and loss statements, and such other statements of financial operations, special report, memoranda of any facts and transactions, which in the opinion of the Secretary of Transportation affect the financial results in, the performance of, or transactions or operations under, such contract; (3) that the Secretary of Transportation shall be authorized to examine and audit the books, records, and accounts of all persons referred to in this section whenever he may deem it necessary or desirable; and (4) that upon the willful failure or refusal of any person described in this section to comply with the contract provisions required by this section, the Secretary of Transportation shall have the right to rescind the contract, and upon such rescission, the United States shall be relieved of all further liability on such contract.
(Added and amended
Editorial Notes
Codification
Section consists of text of act June 29, 1936, ch. 858, title VIII, §801,
Amendments
2016—