retary. Receipts from charter operations of Government-owned vessels under 
the jurisdiction of the Secretary shall be credited to the Fund. 
‘‘§ 50302. Port development 
‘‘(a) GENERAL REQUIREMENTS.—With the objective of promoting, en-
couraging, and developing ports and transportation facilities in connection 
with water commerce over which the Secretary of Transportation has juris-
diction, the Secretary, in cooperation with the Secretary of the Army, 
shall— 
‘‘(1) investigate territorial regions and zones tributary to ports, tak-
ing into consideration the economies of transportation by rail, water, 
and highway and the natural direction of the flow of commerce; 
‘‘(2) investigate the causes of congestion of commerce at ports and 
applicable remedies; 
‘‘(3) investigate the subject of water terminals, including the nec-
essary docks, warehouses, and equipment, to devise and suggest the 
types most appropriate for different locations and for the most expedi-
tious and economical transfer or interchange of passengers or property 
between water carriers and rail carriers; 
‘‘(4) consult with communities on the appropriate location and plan 
of construction of wharves, piers, and water terminals; 
‘‘(5) investigate the practicability and advantages of harbor, river, 
and port improvements in connection with foreign and coastwise trade; 
and 
‘‘(6) investigate any other matter that may tend to promote and en-
courage the use by vessels of ports adequate to care for the freight that 
naturally would pass through those ports. 
‘‘(b) 
SUBMISSION
OF
FINDINGS
TO
SURFACE
TRANSPORTATION 
BOARD.—After an investigation under subsection (a), if the Secretary of 
Transportation believes that the rates or practices of a rail carrier subject 
to the jurisdiction of the Surface Transportation Board are detrimental to 
the objective specified in subsection (a), or that new rates or practices, new 
or additional port terminal facilities, or affirmative action by a rail carrier 
is necessary to promote that objective, the Secretary may submit findings 
to the Board for action the Board considers appropriate under existing law. 
‘‘§ 50303. Operating property and extending term of notes 
‘‘(a) GENERAL AUTHORITY.—The Secretary of Transportation may— 
‘‘(1) operate or lease docks, wharves, piers, or real property under 
the Secretary’s control; and 
‘‘(2) make extensions and accept renewals of— 
‘‘(A) promissory notes and other evidences of indebtedness on 
property; and 
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‘‘(B) mortgages and other contracts securing the property. 
‘‘(b) TERMS
OF TRANSACTIONS.—A transaction under subsection (a) 
shall be on terms the Secretary considers necessary to carry out the pur-
poses of this subtitle, but consistent with sound business practice. 
‘‘(c) AVAILABILITY OF AMOUNTS.—Amounts received by the Secretary 
from a transaction under this section are available for expenditure by the 
Secretary as provided in this subtitle. 
‘‘§ 50304. Sale and transfer of property 
‘‘(a) AUTHORITY TO SELL.—The Secretary of Transportation may sell 
property (other than vessels transferred under section 4 of the Merchant 
Marine Act, 1920 (ch. 250, 41 Stat. 990)) on terms the Secretary considers 
appropriate. 
‘‘(b) TRANSFERS FROM MILITARY TO CIVILIAN CONTROL.—When the 
President considers it in the interest of the United States, the President 
may transfer to the Secretary of Transportation possession and control of 
property described in the second paragraph of section 17 of the Merchant 
Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is pos-
sessed and controlled by the Secretary of a military department. 
‘‘(c) TRANSFERS FROM CIVILIAN TO MILITARY CONTROL.—When the 
President considers it necessary, the President by executive order may 
transfer to the Secretary of a military department possession and control 
of property described in section 17 of the Merchant Marine Act, 1920 (ch. 
250, 41 Stat. 994), as originally enacted, that is possessed and controlled 
by the Secretary of Transportation. The President’s order shall state the 
need for the transfer and the period of the need. When the President de-
cides that the need has ended, the possession and control shall revert to the 
Secretary of Transportation. The property may not be sold except as pro-
vided by law. 
‘‘§ 50305. Appointment of trustee or receiver and operation 
of vessels 
‘‘(a) APPOINTMENT OF TRUSTEES AND RECEIVERS.— 
‘‘(1) APPOINTMENT OF SECRETARY.—In a proceeding in a court of 
the United States in which a trustee or receiver may be appointed for 
a corporation operating a vessel of United States registry between the 
United States and a foreign country, on which the United States Gov-
ernment holds a mortgage, the court may appoint the Secretary of 
Transportation as the sole trustee or receiver (subject to the direction 
of the court) if— 
‘‘(A) the court finds that the appointment will— 
‘‘(i) inure to the advantage of the estate and the parties 
in interest; and 
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‘‘(ii) tend to carry out the purposes of this subtitle; and 
‘‘(B) the Secretary expressly consents to the appointment. 
‘‘(2) APPOINTMENT OF OTHER PERSON.—The appointment of an-
other person as trustee or receiver without a hearing becomes effective 
when ratified by the Secretary, but the Secretary may demand a hear-
ing. 
‘‘(b) OPERATION OF VESSELS.— 
‘‘(1) IN GENERAL.—If the court is unwilling to allow the trustee or 
receiver to operate the vessel in foreign commerce without financial aid 
from the Government pending termination of the proceeding, and the 
Secretary certifies to the court that the continued operation of the ves-
sel is essential to the foreign commerce of the United States and is rea-
sonably calculated to carry out the purposes of this subtitle, the court 
may allow the Secretary to operate the vessel, either directly or through 
a managing agent or operator employed by the Secretary. The Sec-
retary must agree to comply with terms imposed by the court sufficient 
to protect the parties in interest. The Secretary also must agree to pay 
all operating losses resulting from the operation. The operation shall 
be for the account of the trustee or receiver. 
‘‘(2) PAYMENT OF OPERATING LOSSES AND OTHER AMOUNTS.—The 
Secretary has no claim against the corporation, its estate, or its assets 
for operating losses paid by the Secretary, but the Secretary may pay 
amounts for depreciation the Secretary considers reasonable and other 
amounts the court considers just. The payment of operating losses and 
the other amounts and compliance with terms imposed by the court 
shall be in satisfaction of any claim against the Secretary resulting 
from the operation of the vessel. 
‘‘(3) DEEMED OPERATION BY GOVERNMENT.—A vessel operated by 
the Secretary under this subsection is deemed to be a vessel operated 
by the United States under chapter 309 of this title. 
‘‘§ 50306. Requiring testimony and records in investigations 
‘‘(a) IN GENERAL.—In conducting an investigation that the Secretary of 
Transportation considers necessary and proper to carry out this subtitle, the 
Secretary may administer oaths, take evidence, and subpoena persons to 
testify and produce documents relevant to the matter under investigation. 
Persons may be required to attend or produce documents from any place 
in the United States at any designated place of hearing. 
‘‘(b) FEES AND MILEAGE.—Persons subpoenaed by the Secretary under 
subsection (a) shall be paid the same fees and mileage paid to witnesses in 
the courts of the United States. 
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‘‘(c) ENFORCEMENT OF SUBPOENAS.—If a person disobeys a subpoena 
issued under subsection (a), the Secretary may seek an order enforcing the 
subpoena from the district court of the United States for the district in 
which the person resides or does business. Process may be served in the ju-
dicial district in which the person resides or is found. The court may issue 
an order to obey the subpoena and punish a refusal to obey as a contempt 
of court. 
‘‘CHAPTER 505—OTHER GENERAL PROVISIONS 
‘‘Sec. 
‘‘50501.
Entities deemed citizens of the United States. 
‘‘50502.
Applicability to receivers, trustees, successors, and assigns. 
‘‘50503.
Oceanographic research vessels. 
‘‘50504.
Sailing school vessels. 
‘‘§ 50501. Entities deemed citizens of the United States 
‘‘(a) IN GENERAL.—In this subtitle, a corporation, partnership, or asso-
ciation is deemed to be a citizen of the United States only if the controlling 
interest is owned by citizens of the United States. However, if the corpora-
tion, partnership, or association is operating a vessel in the coastwise trade, 
at least 75 percent of the interest must be owned by citizens of the United 
States. 
‘‘(b) ADDITIONAL REQUIREMENTS FOR CORPORATIONS.—In this subtitle, 
a corporation is deemed to be a citizen of the United States only if, in addi-
tion to satisfying the requirements in subsection (a)— 
‘‘(1) it is incorporated under the laws of the United States or a 
State; 
‘‘(2) its chief executive officer, by whatever title, and the chairman 
of its board of directors are citizens of the United States; and 
‘‘(3) no more of its directors are noncitizens than a minority of the 
number necessary to constitute a quorum. 
‘‘(c) DETERMINATION OF CONTROLLING CORPORATE INTEREST.—The 
controlling interest in a corporation is owned by citizens of the United 
States under subsection (a) only if— 
‘‘(1) title to the majority of the stock in the corporation is vested 
in citizens of the United States free from any trust or fiduciary obliga-
tion in favor of a person not a citizen of the United States; 
‘‘(2) the majority of the voting power in the corporation is vested 
in citizens of the United States; 
‘‘(3) there is no contract or understanding by which the majority of 
the voting power in the corporation may be exercised, directly or indi-
rectly, in behalf of a person not a citizen of the United States; and 
‘‘(4) there is no other means by which control of the corporation is 
given to or permitted to be exercised by a person not a citizen of the 
United States. 
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