‘‘§ 50113. Use and performance reports by operators of ves-
sels 
‘‘(a) FILING REQUIREMENT.—The Secretary of Transportation by regula-
tion may require the operator of a vessel in the waterborne foreign com-
merce of the United States to file such report, account, record, or memo-
randum on the use and performance of the vessel as the Secretary considers 
desirable to assist in carrying out this subtitle. The report, account, record, 
or memorandum shall be signed and verified, and be filed at the times and 
in the manner, as provided by regulation. 
‘‘(b) CIVIL PENALTY.—An operator not filing a report, account, record, 
or memorandum required by the Secretary under this section is liable to the 
United States Government for a civil penalty of $50 for each day of the 
violation. A penalty imposed under this section on the operator of a vessel 
constitutes a lien on the vessel involved in the violation. A civil action in 
rem to enforce the lien may be brought in the district court of the United 
States for any district in which the vessel is found. The Secretary may remit 
or mitigate any penalty imposed under this section.
‘‘CHAPTER 503—ADMINISTRATIVE
‘‘Sec. 
‘‘50301.
Vessel Operations Revolving Fund. 
‘‘50302.
Port development. 
‘‘50303.
Operating property and extending term of notes. 
‘‘50304.
Sale and transfer of property. 
‘‘50305.
Appointment of trustee or receiver and operation of vessels. 
‘‘50306.
Requiring testimony and records in investigations.
‘‘§ 50301. Vessel Operations Revolving Fund 
‘‘(a) IN GENERAL.—There is a ‘Vessel Operations Revolving Fund’ for 
use by the Secretary of Transportation in carrying out duties and powers 
related to vessel operations, including charter, operation, maintenance, re-
pair, reconditioning, and improvement of merchant vessels under the juris-
diction of the Secretary. The Fund has a working capital of $20,000,000, 
to remain available until expended. 
‘‘(b) RELATIONSHIP TO OTHER LAWS.—Notwithstanding any other law, 
rates for shipping services provided under the Fund shall be prescribed by 
the Secretary and the Fund shall be credited with receipts from vessel oper-
ations conducted under the Fund. Sections 1(a) and (c), 3(c), and 4 of the 
Act of March 24, 1943 (50 App. U.S.C. 1291(a), (c), 1293(c), 1294), apply 
to those operations and to seamen employed through general agents as em-
ployees of the United States Government. Notwithstanding any other law 
on the employment of persons by the Government, the seamen may be em-
ployed in accordance with customary commercial practices in the maritime 
industry. 
‘‘(c) ADVANCEMENTS.—With the approval of the Director of the Office 
of Management and Budget, the Secretary may advance amounts the Sec-
retary considers necessary, but not more than 2 percent of vessel operating 
expenses, from the Fund to the appropriation ‘Salaries and Expenses’ in 
carrying out duties and powers related to vessel operations, without regard 
to the limitations on amounts stated in that appropriation. 
‘‘(d) TRANSFERS.—The unexpended balances of working funds or of allo-
cation accounts established after January 1, 1951, for the activities pro-
vided for in subsection (a), and receipts received from those activities, may 
be transferred to the Fund, which shall be available for the purposes of 
those working funds or allocation accounts. 
‘‘(e) LIMITATION.—
‘‘(1) IN GENERAL.—Amounts made available to the Secretary for 
maritime activities by this section or any other law may not be used 
to pay for a vessel described in paragraph (2) unless the compensation 
to be paid is computed under section 56303 of this title as that section 
is interpreted by the Comptroller General. 
‘‘(2) APPLICABLE VESSELS.—Paragraph (1) applies to a vessel—
‘‘(A) the title to which is acquired by the Government by req-
uisition or purchase; 
‘‘(B) the use of which is taken by requisition or agreement; or 
‘‘(C) lost while insured by the Government. 
‘‘(3) NONAPPLICABLE VESSELS.—Paragraph (1) does not apply to a 
vessel under a construction-differential subsidy contract. 
‘‘(f) AVAILABILITY FOR ADDITIONAL PURPOSES.—The Fund is available 
for—
‘‘(1) necessary expenses incurred in the protection, preservation, 
maintenance, acquisition, or use of vessels involved in mortgage fore-
closure or forfeiture proceedings instituted by the Government, includ-
ing payment of prior claims and liens, expenses of sale, or other related 
charges; 
‘‘(2) necessary expenses incident to the redelivery and lay-up, in the 
United States, of vessels chartered as of June 20, 1956, under agree-
ments not calling for their return to the Government; 
‘‘(3) the activation, repair, and deactivation of merchant vessels 
chartered for limited emergency purposes during fiscal year 1957 under 
the jurisdiction of the Secretary; and 
‘‘(4) payment of expenses of custody and maintenance of Govern-
ment-owned vessels not in the National Defense Reserve Fleet. 
‘‘(g) EXPENSES AND RECEIPTS RELATED TO CHARTER OPERATIONS.—
The Fund is available for expenses incurred in activating, repairing, and de-
activating merchant vessels chartered under the jurisdiction of the Sec-
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
‘‘(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