An Act to amend the Merchant Marine Act, 1936, in order to extend the life of certain vessels under the provisions of such act from 20 to 25 years
PL 86-518 (H.R.10646), enacted 06/12/1960

216 
PUBLIC LAW 86-518-JUNE 12, 1960 
[74 ST A T , 
June 12, 1960 
[H.R. 10646] 
Public Law 86-518 
AN ACT 
To amend the Merchant Marine Act, 1936, in order to extend the life of certain 
vessels under the provisions of such Act from twenty to twenty-five years. 
Vessels. 
Commercial ex-
pectancy. 
52 Stat. 954. 
46 U S C 1125-
1277, passim. 
60 Stat, 43. 
50 U S C 
app. 
1737. 
52 Stat, 957. 
46 u s e 1152. 
46 use 1156. 
46 u s e 1181. 
53 Stat. 1186. 
46 u s e 1204. 
52 Stat. 972. 
46 u s e 1276. 
46 use 1277. 
49 
Stat. 
1985, 
46 
use 1245. 
52 
Stat. 954. 
46 U S 
C 1125-
1277, passim. 
52 
Stat, 969. 
46 U S 
C 1271-
1279. 
Be it enacted by the Seriate and Hou^e of Representatives 
of the 
United States of America in Congress assembled., That sections 216, 
502(c), 503, 507, 509, 510 (d) and (g), 605(b), 607(b), 705, 1104(a) 
(3), and 1107(5) of the Merchant Marine Act, 1936, and section 4 
of the Merchant Ship Sales Act of 1946, are amended by striking out 
the word "twenty" wherever appearing therein and inserting in lieu 
thereof "twenty-five". 
SEC. 2. Section 502(g) of the Merchant Marine Act, 1936, is 
amended by striking out "based on a twenty-year life expectancy" 
and inserting in lieu thereof "at the rate of 4 per centum per annum". 
SEC. 3. Section 506 of the Merchant Marine Act, 1936, is amended 
by striking out "one-tw^entieth" and inserting in lieu thereof "one-
twenty-fifth". 
SEC. 4. Section 611(c) of the Merchant Marine Act, 1936, is 
amended by striking out "5 per centum" and inserting in lieu thereof 
"4 per centum". 
SEC. 5. Section 714 of the Merchant Marine Act, 1936, is amended 
(1) by striking out "5 per centum" and inserting in lieu thereof "4 
per centum"; (2) by striking out "twenty" wherever appearing 
therein and inserting in lieu thereof "twenty-five"; and (3) by strik-
ing out "one-twentieth" and inserting in lieu thereof "one-twenty-
fifth". 
SEC. 6. Clauses (1), (2), and (3) of section 1106 of the Merchant 
Marine Act, 1936, are amended by striking out "the maturity date of 
the original mortgage" and inserting in lieu thereof "twenty-five years 
from the date of the original mortgage". 
SEC. 7. Section 1107 (4) of the Merchant Marine Act, 1936, is 
amended by striking out "5 per centum" wherever appearing therein 
and inserting in lieu thereof "4 per centum". 
SEC. 8. (a) The amendments made by this Act shall apply only to 
vessels delivered by the shipbuilder on or after January 1, 1946, and 
with respect to such vessels shall become effective on January 1, 1960. 
With respect to vessels delivered by the shipbuilder before January 1, 
1946^ the provisions of the Merchant Marine Act, 1936, existing im-
mediately before the date of enactment of this Act shall continue in 
effect. 
(b) With respect to vessels delivered by the shipbuilder on or after 
January 1, 1946, and before January 1, 1960, depreciation under sec-
tions 215, 502(g), 607, 510(d), 607(b), 611(c), 705, 714, and 1107(4) 
of the Merchant Marine Act, 1936, shall be taken (unless a contract 
which is in effect on January 1, 1960, otherwise provides) for the 
period prior to January 1,1960, at the rate provided by the Merchant 
Marine Act^ 1936, as it existed immediately prior to the amendments 
made by this Act, and for the period after January 1, 1960, such de-
preciation shall be taken on the basis of the remaining years of a use-
ful life of twenty-five years unless the vessel is reconstructed or recon-
ditioned in which event such depreciation, from the time of such re-
construction or reconditioning, shall be taken on the basis of the re-
maining years of a useful life of the vessel determined jointly by the 
Secretary of Commerce and the Secretary of the Treasury. 
(c) Any contract (including but not limited to mortgage insurance 
contracts), commitment to insure a mortgage under title X I of the 
Merchant Marine Act, 1936, or mortgage, between any person and the 
United States or any agency thereof, or any mortgage insurance 
74 S T A T . ] 
PUBLIC LAW 86-519-JUNE 12, 1960 
217 
contract under title X I , which was entered into prior to the date of 
enactment of this Act and which would be affected if the provisions 
of the amendments made by this Act were applicable thereto, may, at 
the request of such person agreed to by any third parties in interest, or 
at the request of the mortgagor agreed to by the mortgagee in the case 
of such a mortgage insurance contract, made within one hundred and 
eighty days after such date of enactment to the agency of the United 
States holding such contract, be revised to be in accordance with the 
law as amended by this Act, with respect to such of the vessels covered 
thereby as may be designated by the applicant. Any such revision 
shall provide with respect to the amendments to sections 215, 502(g), 
507, 510(d), 607(b), 611(c), 705, 714, and 1107(4) of the Merchant 
Marine Act, 1936, that depreciation for the period prior to January 1, 
1960, shall be taken at the rate provided by the Merchant Marine Act, 
1936, prior to the amendments made by this Act, and that the remain-
ing depreciation shall be taken for the period beginning January 1, 
1960, on the basis of the remaining years of a useful life of twenty-five 
years, unless the vessel has been reconstructed or reconditioned, in 
which event such depreciation from the time of such reconstruction 
or reconditioning shall be taken on the basis of the remaining years of 
a useful life of the vessel determined jointly by the Secretary of Com-
merce and the Secretary of the Treasury. Any such revision shall 
provide with respect to any remaining unpaid debts that such unpaid 
debts shall be paid in equal annual installments over the remaining 
years of a useful life of twenty-five years. 
SEC. 9. Nothing in any amendment made by this Act shall operate 
or be interpreted to change from twenty to twenty-five years the 
provisions of the Merchant Marine Act, 1936, as amended, relating to 
^9 stau ^
1
2
6
^
7
. 
the commercial expectancy or period of depreciation of any tanker or 
other liquid bulk carrier. 
Approved June 12, 1960. 
Public Law 86-519 
AN ACT 
June 12, 1960 
To amend section 57a of the Bankruptcy Act (11 U.S.C. 93(a)) and section 152, 
[H. R. 68I6] 
title 18, United States Code. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenibled, That paragraph a ^^^^^ k r uptcy 
of section 57 of the Bankruptcy Act (11 U.S.C. 93(a)) is amended to 
EUiiiinauon o
f 
read as follows: 
.
.
. 
°12 W , 866. 
"a. A proof of claim shall consist of a statement, in writing 
and signed by a creditor, setting forth the claim; the consideration 
therefor; whether any and, if so, what securities are held there-
for ; and whether any and, if so, what payments have been made 
thereon; and that the claim is justly owmg from the bankrupt 
to the creditor. 
A proof of claim filed in accordance with the re-
quirements of the Bankruptcy Act, the General Orders of the 
Supreme Court, and the official forms, even though not verified 
under oath, shall constitute prima facie evidence of the validity 
and amount of the claim." 
SEC. 2. That paragraph 3 of section 152, title 18, United States Code, 
" stat. 689. 
is amended to read as follows: 
"Whoever knowingly and fraudulently presents any false claim for 
proof against the estate of a bankrupt, or uses any such claim in any 
bankruptcy proceeding, personallv, or by agent, proxy, or attorney, 
or as agent, proxy, or attorney; or . 
Approved June 12, 1960.