170 
‘‘(4) have such maturity (not to exceed 20 years), take such form, 
and contain such conditions as the Secretary determines necessary for 
the program to which they relate; 
‘‘(5) have as the exclusive source of repayment (subject to the second 
sentence of subsection (d)(2)) and as the exclusive payment security, 
the fishing fees established under the program; and 
‘‘(6) at the discretion of the Secretary be issued in the public market 
or sold to the Federal Financing Bank. 
‘‘(d) FISHING CAPACITY REDUCTION FUND.— 
‘‘(1) IN GENERAL.—There is a separate account in the Treasury, 
known as the Fishing Capacity Reduction Fund. Within the Fund, at 
least one subaccount shall be established for each program into which 
shall be paid all fishing fees established under the program and other 
amounts authorized for the program. 
‘‘(2) AVAILABILITY OF AMOUNTS.—Amounts in the Fund shall be 
available, without appropriation or fiscal year limitation, to the Sec-
retary to pay the cost of the program, including payments to financial 
institutions to pay debt obligations incurred by entities under this sec-
tion. Funds available for this purpose from other amounts available for 
the program may also be used to pay those debt obligations. 
‘‘(3) INVESTMENT.—Amounts in the Fund that are not currently 
needed for the purpose of this section shall be kept on deposit or in-
vested in obligations of the United States Government. 
‘‘(e) REGULATIONS.—The Secretary shall prescribe regulations the Sec-
retary considers necessary to carry out this section. 
‘‘CHAPTER 539—WAR RISK INSURANCE 
‘‘Sec. 
‘‘53901.
Definitions. 
‘‘53902.
Authority to provide insurance. 
‘‘53903.
Insurable interests. 
‘‘53904.
Liability insurance for persons involved in war or defense efforts. 
‘‘53905.
Agency insurance. 
‘‘53906.
Hull insurance valuation. 
‘‘53907.
Reinsurance. 
‘‘53908.
Additional insurance privately obtained. 
‘‘53909.
War risk insurance revolving fund. 
‘‘53910.
Administrative. 
‘‘53911.
Civil actions for losses. 
‘‘53912.
Expiration date. 
‘‘§ 53901. Definitions 
‘‘In this chapter: 
‘‘(1) AMERICAN VESSEL.—The term ‘American vessel’ includes— 
‘‘(A) a documented vessel with a registry or coastwise endorse-
ment under chapter 121 of this title; 
‘‘(B) an undocumented vessel owned or chartered by or made 
available to the United States Government; and 
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‘‘(C) a tug, barge, or other watercraft (whether or not docu-
mented) owned by a citizen of the United States and used in es-
sential water transportation or in the fisheries, except only for 
sport fishing. 
‘‘(2) CARGO.—The term ‘cargo’ includes a loaded or empty container 
on a vessel. 
‘‘(3) TRANSPORTATION IN THE WATERBORNE COMMERCE OF THE 
UNITED STATES.—The term ‘transportation in the waterborne com-
merce of the United States’ includes the operation of a vessel in the 
fisheries, except only for sport fishing. 
‘‘(4) WAR RISKS.—The term ‘war risks’ includes, to the extent the 
Secretary of Transportation determines— 
‘‘(A) any part of a loss excluded from marine insurance cov-
erage under a ‘free of capture or seizure’ clause or analogous 
clause; and 
‘‘(B) any other loss from a hostile act, including confiscation, 
expropriation, nationalization, or deprivation. 
‘‘§ 53902. Authority to provide insurance 
‘‘(a) IN GENERAL.—With the approval of the President, and after such 
consultation with interested agencies of United States Government as the 
President may require, the Secretary of Transportation may provide insur-
ance and reinsurance against loss or damage from war risks as provided by 
this chapter whenever it appears to the Secretary that insurance adequate 
for the needs of the waterborne commerce of the United States cannot be 
obtained on reasonable terms and conditions from companies authorized to 
do insurance business in a State of the United States. 
‘‘(b) CONSIDERATION OF RISK.—Insurance or reinsurance under this 
chapter shall be based, insofar as practicable, on consideration of the risk 
involved. 
‘‘(c) AVAILABILITY
OF VESSEL DURING WAR
OR NATIONAL EMER-
GENCY.—Insurance or reinsurance for a vessel may be provided under this 
chapter only on the condition that the vessel will be available to the Govern-
ment in time of war or national emergency. 
‘‘§ 53903. Insurable interests 
‘‘(a) IN GENERAL.—The Secretary of Transportation may provide insur-
ance and reinsurance under this chapter for— 
‘‘(1) an American vessel, including a vessel under construction; 
‘‘(2) a foreign vessel— 
‘‘(A) owned by a citizen of the United States; or 
‘‘(B) engaged in transportation in the waterborne commerce of 
the United States or in such other transportation by water or such 
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other services as the Secretary considers to be in the interest of 
the national defense or national economy of the United States, 
when so engaged; 
‘‘(3) cargo— 
‘‘(A) shipped or to be shipped on a vessel insurable under this 
section, including by express or registered mail; 
‘‘(B) owned by a citizen or resident of the United States; 
‘‘(C) imported to or exported from the United States, or sold 
or purchased by a citizen or resident of the United States, under 
a contract of sale or purchase the terms of which provide that the 
risk of loss by war risks or the obligation to provide insurance 
against war risks is on a citizen or resident of the United States; 
or 
‘‘(D) shipped between ports in the United States; 
‘‘(4) disbursements, including advances to masters and general aver-
age disbursements, and freight and passage money of a vessel insurable 
under this section; 
‘‘(5) personal effects of an individual on a vessel insurable under this 
section; 
‘‘(6) loss of life, injury, or detention by an enemy of the United 
States after capture, with respect to an individual on a vessel insurable 
under this section; and 
‘‘(7) statutory or contractual obligations or other liabilities of a ves-
sel insurable under this section or of the owner or charterer of such 
a vessel, of a nature customarily covered by insurance. 
‘‘(b) CONSIDERATIONS FOR FOREIGN VESSELS.—In determining whether 
to provide insurance or reinsurance for a foreign vessel, the Secretary shall 
consider the characteristics, employment, and general management of the 
vessel by the owner or charterer. 
‘‘(c) NON-WAR RISKS.—Insurance of a risk under subsection (a)(5)–(7), 
insofar as it involves a liability related to an individual on the vessel, may 
include risks other than war risks to the extent the Secretary considers ad-
visable. 
‘‘§ 53904. Liability insurance for persons involved in war or 
defense efforts 
‘‘(a) IN GENERAL.—The Secretary of Transportation may provide insur-
ance under this chapter against legal liability that a person may incur in 
providing services or facilities for a vessel if, in the opinion of the Secretary, 
the insurance— 
‘‘(1) is required in prosecuting a war or for national defense; and 
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‘‘(2) cannot be obtained at reasonable rates or on reasonable terms 
and conditions from approved companies authorized to do insurance 
business in a State of the United States. 
‘‘(b) LIMITATIONS.—Employer liability insurance and worker compensa-
tion insurance against legal liability to employees may not be provided under 
this section. 
‘‘§ 53905. Agency insurance 
‘‘(a) IN GENERAL.—With the approval of the President, an agency of the 
United States Government may obtain insurance provided for by this chap-
ter from the Secretary of Transportation, except as provided in sections 
17302 and 17303 of title 40. 
‘‘(b) PREMIUM WAIVERS.—With the approval of the President, the Sec-
retary of Transportation may provide insurance under this chapter at the 
request of the Secretary of Defense and other agencies the President may 
prescribe, without payment of an insurance premium if the Secretary of De-
fense or agency agrees to indemnify the Secretary of Transportation against 
loss covered by the insurance. The Secretary of Defense and agencies may 
make such an indemnity agreement. 
‘‘(c) PRESIDENTIAL APPROVAL.—The signature of the President (or an 
official designated by the President) on the agreement shall be treated as 
the approval required by section 53902(a) of this title. 
‘‘§ 53906. Hull insurance valuation 
‘‘(a) STATED VALUATION.—The valuation in a hull insurance policy for 
actual or constructive total loss of the insured vessel shall be a stated valu-
ation determined by the Secretary of Transportation. The stated valu-
ation— 
‘‘(1) shall exclude national defense features paid for by the United 
States Government; and 
‘‘(2) may not exceed the amount that would be payable if the owner-
ship of the vessel had been requisitioned under chapter 563 of this title 
at the time the insurance attached under the policy. 
‘‘(b) REJECTING STATED VALUATION.—Within 60 days after the insur-
ance attaches under a policy referred to in subsection (a) or within 60 days 
after the Secretary determines the valuation, whichever is later, the insured 
may reject the valuation and pay, at the rate provided in the policy, pre-
miums based on the asserted valuation the insured specifies at the time of 
rejection. However, the asserted valuation is not binding on the Government 
in any subsequent action on the policy. 
‘‘(c) AMOUNT OF CLAIM.—If a vessel is actually or constructively totally 
lost and the insured under a policy referred to in subsection (a) has not 
rejected the stated valuation determined by the Secretary, the amount of a 
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