cfr_sections
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14 rows where part_number = 390 and title_number = 46 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 46:46:8.0.1.12.45.0.18.1 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.1 Scope of the regulations. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) In general —(1) Scope. The regulations prescribed in this part govern the capital construction fund (“fund”) authorized by 46 U.S.C. 53501 et seq. (2) Establishment of a fund. A fund is established by an agreement (“agreement”), which is a contract between the party (“party”) and the United States. (3) Purpose of the fund. Chapter 535 provides that any agreement entered into with the Secretary of Transportation must be for the purpose of providing replacement vessels, additional vessels or reconstructed vessels to be built and documented in the United States and operated in the United States foreign, Great Lakes or noncontiguous domestic trade. (4) Benefits of a fund. Chapter 535 provides for the nontaxability of certain deposits of money or other property placed into a fund established pursuant to an agreement within certain ceilings. These ceilings are equal to: (i) Earnings or gains realized from the operation of an agreement vessel; (ii) Net proceeds realized from the sale or other disposition of an agreement vessel or from insurance or indemnification from the loss of an agreement vessel; and (iii) Earnings from the investment or reinvestment of amounts on deposit in the fund. (5) Delegation. The Secretary of Transportation has delegated the authority for matters relating to the United States Merchant Marine to the Maritime Administrator, Department of Transportation (“Maritime Administrator”). (b) Act. For purposes of this part, the term Act shall mean Chapter 535 of Title 46, United States Code. (c) Joint regulations. For purposes of this part, the term joint regulations shall mean the regulations prescribed by the Secretary of Transportation and the Secretary of the Treasury under Chapter 535 and published in title 26, part 3 of the Code of Federal Regulations (reprinted in part 391 of this chapter). (d) Cross references. For rules relating to the Federal Income Tax aspects of a fund, see the joint regulations. For rules governing agreements relating to the fisheries of t… | |||||
| 46:46:8.0.1.12.45.0.18.10 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.10 Nonqualified withdrawals. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) In general —(1) Defined. Any withdrawal from a fund which is not a qualified withdrawal is a nonqualified withdrawal. (2) Tax aspects of a nonqualified withdrawal. For the tax aspects of a nonqualified withdrawal, see 46 U.S.C. 53511 and § 3.7 of the joint regulations (§ 391.7 of this chapter). (b) Permission required —(1) In general. The prior written permission of the Maritime Administrator is required before a nonqualified withdrawal may be made. (2) Failure to secure permission. A nonqualified withdrawal made without the prior written permission of the Maritime Administrator shall constitute a material breach of the agreement unless the Maritime Administrator shall determine that failure to obtain prior written consent was excusable. See § 390.13 (relating to failure to fulfill a substantial obligation under the agreement). (3) Types of nonqualified withdrawals which will be permitted. Generally, the Maritime Administrator will give permission to make nonqualified withdrawals when: (i) The party has incurred operating losses from the operations of agreement vessels which have impaired his working capital and it becomes necessary to reimburse its general funds to the extent of such losses; (ii) The party desires to make an expenditure for research, development or design and such an expenditure is incident to new and advanced ship design, machinery and equipment; (iii) The withdrawal would be a qualified withdrawal except for the fact that there is no tax basis left that can be reduced; or (iv) The party demonstrates, to the satisfaction of the Maritime Administrator, that it cannot fulfill its program due to circumstances beyond its control or due to a change in circumstances which makes the completion of its program economically unfeasible. | |||||
| 46:46:8.0.1.12.45.0.18.11 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.11 Sale or other disposition of agreement vessels. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) Eligible agreement vessels. The sale or other disposition (including mortgages) of eligible agreement vessels shall not require prior approval of the Maritime Administrator, but shall require written notification within 10 days after the sale or other disposition. Such notification shall include a description of the transaction, the identity of the transferee, the proceeds to be realized, the date of the transaction and whether the proceeds will be deposited into the fund. (b) Qualified agreement vessels —(1) In general. If a qualified agreement vessel whose basis has been reduced through the application of qualified withdrawals is sold or disposed of (including mortgaged) within one year, interest on the amount of gain attributable to the basis reduction shall attach if the Maritime Administrator determines that the disposition was contrary to the policies of the Act, the joint regulations or these regulations. See § 390.13 (relating to failure to fulfill a substantial obligation under the agreement). (2) Period of one year defined. The one-year period shall mean 365 days from the date of final delivery from the shipyard in the case of construction or reconstruction and 365 days from the date of first loading of the vessel in the case of an acquisition. (3) Prior approval. The party shall obtain the written approval of the Maritime Administrator prior to the sale or other disposition (including mortgage) of a qualified agreement vessel. (4) Deposit requirement. The Maritime Administrator will not normally require the deposit of the net proceeds from the sale of a qualified agreement vessel but shall require the deposit of the net proceeds from the mortgage of a qualified agreement vessel for which qualified withdrawals from the fund have been made. (c) Sale or other disposition of agreement vessels to related persons —(1) In general. Section 3.2(c)(4) of the joint regulations (§ 391.2(c)(4) of this chapter) requires that the net proceeds from the sale or other disposition of an agreement v… | |||||
| 46:46:8.0.1.12.45.0.18.12 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.12 Liquidated damages. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 42 FR 34283, July 5, 1977; 73 FR 56740, Sept. 30, 2008] | (a) Liquidated damages —(1) In general. Each agreement entered into under Chapter 535 shall contain a liquidated damages provision for the purpose of placing the party into its prefund position for each day a qualified agreement vessel is operated in violation of the geographic trading restrictions contained in the Act and § 390.5. The liquidated damages provision requires that the party repay the time value of the deferral of Federal Income Tax which the party has received. (2) Calculation of liquidated damages. The liquidated damages specified in this paragraph shall be calculated as follows: (i) With respect to each vessel operated in violation of the applicable trading restrictions, add (A) the sum of qualified withdrawals for the vessel which have been made from the ordinary income and capital gain accounts to the date of breach, and (B) the amount of any unpaid principal on indebtedness for the vessel which may be paid from the fund less any portion of such amount which by operation of law must be withdrawn from the capital account balance on deposit in the fund on the date of the breach. (ii) Multiply the total derived in paragraph (a)(2)(i) of this section by an assumed effective Federal Income Tax rate of 30 percent; (iii) Compound the product derived in paragraph (a)(2)(ii) of this section at 8 percent annually (A) for 20 years, if the duration of the trading restrictions applicable to the vessel is 20 years in accordance with paragraph (b)(1)(i) of this section; (B) for 10 years, if the duration of the trading restrictions applicable to the vessel is 10 years in accordance with paragraphs (b)(1) (ii), (iii) or (iv) of this section; or (C) for 5 years, if the duration of the trading restrictions applicable to the vessel is 5 years in accordance with paragraph (b)(1)(iv) of this section. (iv) Subtract the amount calculated in paragraph (a)(2)(ii) of this section from the product derived in paragraph (a)(2)(iii) of this section; (v) Divide the result derived in paragraph (a)(2)(iv) of this sect… | |||||
| 46:46:8.0.1.12.45.0.18.13 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.13 Failure to fulfill a substantial obligation under the agreement. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) In general. 46 U.S.C. 53509(c) requires the Maritime Administrator to determine whether there has been a failure to fulfill a substantial obligation under an agreement. (b) Contracting Officer's tentative conclusion —(1) Notice. If the Contracting Officer tentatively concludes that any substantial obligation under the agreement, the joint regulations or these regulations is not being fulfilled by the party he shall serve written notice of his tentative conclusion upon the party by certified mail with return receipt requested. The notice shall contain the following information: (i) A statement of the grounds upon which the tentative conclusion is based; (ii) The amount the Contracting Officer tentatively concludes should be withdrawn as a nonqualified withdrawal; and (iii) A statement that the tentative conclusion shall become a final decision unless the party requests, within 30 days, an opportunity either to cure its breach or to be heard and offer evidence in opposition to the tentative conclusion. (2) Effect of notice. The notice of the tentative conclusion shall become a final decision as described in paragraph (d)(1) of this section, unless within 30 days of receipt of such a written notice the party by personal delivery or by certified mail, requests the opportunity either to cure its breach or to be heard and offer evidence in opposition to the tentative conclusion, in which case no further withdrawals from the fund, without the written prior approval of the Contracting Officer, shall be made by the party until a binding final decision is reached by the Maritime Administration. (c) Basis for Contracting Officer's tentative conclusion. In determining whether a party has not fulfilled a substantial obligation under its agreement, the Contracting Officer shall consider among other things: (1) The effect of the party's action or omission upon its ability to either carry out the purpose of the fund, accomplish its Schedule B program (see § 390.4(c)) or satisfy its minimum level of deposits i… | |||||
| 46:46:8.0.1.12.45.0.18.14 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.14 Departmental reports and certification. | FMC | [55 FR 34929, Aug. 27, 1990] | (a) In general. For each calendar year, the Secretary of Transportation shall provide the Secretary of the Treasury, within 120 days after the close of such calendar year, a written report with respect to those capital construction funds under the Secretary of Transportation's jurisdiction. (b) Content of reports. Each report shall set forth the name and taxpayer identification number of each person: (1) Establishing a capital construction fund during such calendar year; (2) Maintaining a capital construction fund as of the last day of such calendar year; (3) Terminating a capital construction fund during such calendar year; (4) Making any withdrawal from or deposit into (and the amounts thereof) a capital construction fund during such calendar year; or (5) With respect to which a determination has been made during such calendar year that such person has failed to fulfill a substantial obligation under any capital construction fund agreement to which such person is a party. | |||||
| 46:46:8.0.1.12.45.0.18.2 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.2 Application for an agreement. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 47 FR 25530, June 14, 1982; 68 FR 62539, Nov. 5, 2003; 69 FR 61452, Oct. 19, 2004; 73 FR 56740, Sept. 30, 2008] | (a) In general —(1) Application instructions. The Maritime Administrator has adopted instructions for making application for an agreement. These instructions are contained in appendix I to this part. MARAD will accept electronic options (such as facsimile and Internet) for transmission of required information to MARAD, if practicable. (2) General eligibility requirements. Chapter 535 specifies who is eligible for a fund and the application instructions specify what information is required to establish such eligibility. An applicant must: (i) Be a citizen of the United States within the meaning of 46 U.S.C. 50501, as amended (46 U.S.C. 802, 803). See part 355 of this title for requirements for establishing United States citizenship; (ii) Own or be the lessee of one or more eligible vessels or share thereof as defined in 46 U.S.C. 53501, or be party to a contract for the construction of one or more eligible vessels, or share thereof, as defined in paragraph (b) of § 390.5; (iii) Have a program which furthers the purposes of the Act (see § 390.3 relating to policy considerations) and provides for the acquisition, construction or reconstruction of a qualified vessel, as defined in 46 U.S.C. 53501(5). Such provisions state that the vessel will be operated in the United States foreign, Great Lakes, noncontiguous domestic, or short sea transportation trade as defined in 46 U.S.C. 53501 and 46 U.S.C. 109(b); and (iv) Demonstrate the financial capabilities to accomplish the program. (b) Information which may be required in conjunction with the application. An applicant must provide such facts, documents and materials as the Maritime Administrator may require in considering whether to enter into an agreement. An applicant should be ready to make available such applicable materials, including, but not limited to: Design plans, data concerning the reasonableness of the cost of the program, construction contracts, financial statements, certificates of incorporation, bylaws, articles of partnership, stock ownershi… | |||||
| 46:46:8.0.1.12.45.0.18.3 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.3 Policy considerations. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) In general. It is the policy of the United States, as set forth in 46 U.S.C. 50501, that for the national defense and the development of its foreign and domestic commerce, the United States shall have a merchant marine: sufficient to carry a substantial portion of its water-borne export and import foreign commerce and to provide shipping service essential for maintaining the flow of such commerce at all times; capable of serving as auxiliaries in time of war or national emergency; owned and operated by United States citizens insofar as practicable and composed of the best equipped, safest and most suitable types of vessels, constructed and documented in the United States and manned with United States citizens. (b) Unacceptable programs —(1) In general. The Maritime Administrator will not enter into an agreement where the proposed program is not, in his opinion, in consonance with the policies of the Act. (2) Specific unacceptable programs. The Maritime Administrator will not enter into an agreement where the proposed program is merely to accomplish the following: (i) Reconstruction of an existing vessel, unless such reconstruction will exceed $1,000,000 in cost, will be capitalized under the Internal Revenue Code of 1986, as amended, and the regulations thereunder and will result in a vessel which is significantly more competitive; (ii) Acquisition of an existing vessel; or (iii) Payment of the principal on existing indebtedness. (3) Waiver. The Maritime Administrator may, for good cause shown, waive the provisions of paragraph (b)(2) of this section. For example, the Maritime Administrator may waive the monetary limit in paragraph (b)(2)(i) of this section where the applicant proposes to reconstruct a small vessel. | |||||
| 46:46:8.0.1.12.45.0.18.4 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.4 Description of the agreement. | FMC | (a) In general. The agreement consists of a standard part and appended schedules. The standard part of the agreement contains recitals, covenants and warranties which apply to all parties. The appended schedules set forth the particular program of the party and contain other information unique to each agreement. See § 390.6 (relating to administration of the agreement) for procedures and criteria for the modification of schedules. (b) Schedule A—Eligible agreement vessels. Schedule A lists the names of eligible agreement vessels (as defined in § 390.5), whether owned or leased, and the allowable percentage of the depreciation ceiling, if any, available for deposit purposes by the party. See § 390.7 (relating to deposits) for allowable depreciation in the case of leased vessels. (c) Schedule B—Program —(1) In general. Schedule B sets forth the program of the party including the cost of the program and the time in which the program shall be accomplished. (2) Items in Schedule B. Schedule B shall contain: (i) A statement describing each qualified agreement vessel (as defined in § 390.5) to be acquired, constructed or reconstructed. In the case of reconstruction, the statement will include a general description of the work to be performed; (ii) The anticipated date on which the acquisition, construction or reconstruction of each qualified agreement vessel will commence; (iii) The anticipated total cost, including any costs which will not be paid from the fund, of the acquisition, construction or reconstruction of each qualified agreement vessel; and (iv) The amount to be withdrawn from the fund with respect to the acquisition, construction or reconstruction of each qualified agreement vessel. (3) Submission of contracts. When a contract is executed for any acquisition, construction or reconstruction relating to the agreement, such contract shall be submitted within 30 days after execution to the Maritime Administrator who shall then determine whether such undertaking is in accordance with the progr… | ||||||
| 46:46:8.0.1.12.45.0.18.5 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.5 Agreement vessels. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 55 FR 34928, Aug. 27, 1990; 73 FR 56740, Sept. 30, 2008; 74 FR 17097, Apr. 14, 2009] | (a) In general. 46 U.S.C. 53501 states the requirements for eligible, qualified and agreement vessels. The rules in this section further define such terms and state how vessels must be listed on Schedules A and B in the agreement. (b) Eligible agreement vessels —(1) Definition. An eligible agreement vessel, which may be used to establish ceilings for deposit purposes, is any vessel: (i) Constructed in the United States, and if reconstructed, reconstructed in the United States; the term constructed or reconstructed in the United States includes any vessel which was constructed or reconstructed outside of the United States but documented under the laws of the United States on April 15, 1970, or constructed or reconstructed outside of the United States for use in the United States foreign commerce pursuant to a contract entered into before April 15, 1970; (ii) Documented under the laws of the United States; (iii) Operated in the foreign or domestic commerce of the United States; (iv) Engaged primarily in the waterborne carriage of men, materials, goods or wares; and (v) Designated in the agreement as an “eligible agreement vessel.” (2) Scope of the term “eligible agreement vessel.” For purposes of generating ceilings for deposits under 46 U.S.C. 53505 and the joint regulations the term eligible agreement vessel includes any: (i) Tug or barge; (ii) Vessels which have been contracted for or are in the process of construction; and (iii) Share interest in a vessel; the party is considered to have a share interest in an eligible agreement vessel if the party has the right to use the vessel to generate income or a right to the proceeds or a portion of the proceeds from its use even if the party does not have a proprietary interest in the vessel for purposes of State or Federal law. (3) Foreign or domestic commerce. For the purpose of paragraph (b)(1)(iii) of this section the term foreign or domestic commerce means the water-borne carriage of men, materials, goods or wares between: (i) Two points… | |||||
| 46:46:8.0.1.12.45.0.18.6 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.6 Administration of the agreement. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 41 FR 39751, Sept. 16, 1976; 55 FR 34928, Aug. 27, 1990] | (a) In general. The Maritime Administrator will administer and enforce the agreement in a manner which will insure that the fund is properly established, that the assets in the fund are used to accomplish the program and that the party fully complies with all obligations and responsibilities. This section specifies the reports which must be submitted to the Maritime Administrator and sets forth the procedures for administering the agreement. (b) Reporting requirements —(1) In general. This paragraph describes the reports required to be submitted to the Maritime Administrator by the party. (2) Submission dates. Reports must be submitted annually, in triplicate, for the party's taxable year not later than 90 days after the close of each reporting period. An affidavit regarding the operation of qualified agreement vessels as required by paragraph (b)(7) of this section shall be submitted concurrently with each annual report. (3) Cumulation. The annual report submitted following the close of the party's taxable year shall be cumulative for the party's entire taxable year. (4) Certification. The annual report shall be accompanied by an opinion of an independent certified public accountant to the effect that exhibits (see paragraph (b)(5) of this section) composing the accounting have been prepared in accordance with all published orders, rules, regulations and instructions issued or adopted by the Maritime Administrator. (5) Format. The reports shall consist of the following exhibits: (i) “Exhibit A”—a summary of cash, securities and stock on deposit (showing the adjusted basis for securities and stock), including a subtotal of cash, securities and stock on deposit, net amount of accrued deposits to and accrued withdrawals from the fund and the fund total at the end of the period, and if applicable, a summary of the portion of the fund which represents a “CCF: Security Amount” pursuant to an Agreement Covering the Dual Use of a Capital Construction Fund; (ii) “Exhibit A-1”—a summary of balances in … | |||||
| 46:46:8.0.1.12.45.0.18.7 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.7 Deposits into the fund. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 73 FR 56740, Sept. 30, 2008] | (a) In general —(1) Source of deposits. 46 U.S.C. 53505 provides ceilings within which fund deposits may be made. This section provides rules for the qualification of depositories, timing of deposits, the type of property which may be deposited and the level of deposits. (2) Tax aspects of deposits. For the Federal Income Tax aspects of deposits into a fund, see 46 U.S.C. 53507 and § 3.3 of the joint regulations (§ 391.3 of this chapter). (b) Depositories —(1) In general. 46 U.S.C. 53506 provides that amounts in a fund must be kept in the depository or depositories specified in the agreement and be subject to such trustee or other fiduciary requirements as the Maritime Administrator may specify. (2) Qualifications. The Maritime Administrator has established general qualifications for depositories for all maritime programs authorized under the Act, including the capital construction fund program. The general qualifications are published in part 351 of this title. (3) Fiduciary requirements. Except in unusual circumstances, the Maritime Administrator will not impose special trustee or other fiduciary requirements upon depositories of a fund. For rules relating to a fund held in trust for investment purposes, see paragraph (h) of this section. (4) Type and name of accounts. Unless otherwise specified in the agreement, the party may select the type or types of accounts in which assets of the fund may be deposited. For example, the party may select a savings account for cash and a trust account for intangible property which is held in the fund. Each account shall be in the name of the party and identified as a capital construction fund account. (5) Compensating balances. The obligation of the assets in the fund as a compensating balance shall constitute a material breach of the agreement. (c) Timing of deposits —(1) In general. 46 U.S.C. 53507(b) provides that deposits shall not be taxable only when they are made in accordance with the agreement and not later than the time provided in the joi… | |||||
| 46:46:8.0.1.12.45.0.18.8 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.8 Investment of the fund. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 42 FR 34882, July 7, 1977; 43 FR 51636, Nov. 6, 1978; 55 FR 34928, Aug. 27, 1990; 73 FR 56740, Sept. 30, 2008] | (a) In general. 46 U.S.C. 53506 provides that assets in the fund must be invested in accordance with certain restrictions. The rules in this section provide for the quality of securities, restrictions on the type of stock in which a fund may invest, related company investments and miscellaneous prohibited activities. (b) Permissible investments —(1) In general. The party, at its discretion, or the party's trustee, if established pursuant to paragraph (h) of § 390.7, may invest in the types of securities specified in this paragraph. (2) Interest bearing securities. The party or the party's trustee may invest in any obligation of the United States Government, including any agency or instrumentality thereof, and in the interest bearing securities listed below: (i) Any obligation of a state or local government, including any agency or instrumentality thereof, or any domestic obligation, which is rated by Moody's Investors Service, Inc., as “Baa” or better or by Standard and Poor's Corporations as “BBB” or better; (ii) Bankers' acceptances, certificates of deposit, repurchase agreements, and short-term commercial obligations, provided that the latter must be readily marketable and rated not lower than “Prime” by Moody's Investors Services, Inc. or “B” by Standard & Poor's Corp.; and (iii) Any unsubordinated obligation of an issuer that has any unsecured securities with a credit rating of “Baa” or better if rated by Moddy's Investors Services, Inc., or “BBB” or better if rated by Standard and Poor's Corporation, or by an issuer that has a commercial paper rating not lower than “Prime” by Moody's Investors Service, Inc. or “B” by Standard and Poor's Corporation. (3) Guaranteed interest bearing securities. The party or the party's trustee may invest in interest bearing securities which do not meet the investment criteria set forth in this paragraph (b) Provided, That: (i) The types of interest bearing securities and their terms and conditions are acceptable to the Maritime Administration; (ii) All prin… | |||||
| 46:46:8.0.1.12.45.0.18.9 | 46 | Shipping | II | K | 390 | PART 390—CAPITAL CONSTRUCTION FUND | § 390.9 Qualified withdrawals. | FMC | [41 FR 4265, Jan. 29, 1976, as amended at 55 FR 34929, Aug. 27, 1990; 73 FR 56740, Sept. 30, 2008] | (a) In general —(1) Defined. In accordance with 46 U.S.C. 53509, qualified withdrawals are those made from a fund in accordance with the agreement, but only if they are for: (i) The acquisition, construction or reconstruction of a qualified agreement vessel; (ii) The acquisition, construction or reconstruction of barges or containers which are part of the complement of a qualified agreement vessel; or (iii) The payment of the principal on indebtedness incurred in connection with the acquisition, construction or reconstruction of a qualified agreement vessel or a barge or container which is part of the complement of a qualified agreement vessel. (2) Tax aspects of a qualified withdrawal. For the tax aspects of a qualified withdrawal, see 46 U.S.C. 50510 and § 3.6 of the joint regulations (§ 391.6 of this chapter). (b) Purpose of qualified withdrawals —(1) Acquisition of qualified agreement vessels. (i) The term acquisition of a qualified agreement vessel shall mean any transaction, including a corporate merger, where the party obtains a proprietary interest in an existing vessel and such a proprietary interest will, in the opinion of the Maritime Administrator, further the purposes and policies of the Act. See § 390.3 (relating to policy considerations). (ii) Qualified withdrawals for the acquisition of a qualified agreement vessel shall only be allowed for amounts determined by independent appraisal to be the fair market value of the vessel, at the time of the acquisition, or the actual cost directly allocable to acquiring only the vessel, whichever is less. (2) Construction of qualified agreement vessels. The term construction of a qualified agreement vessel shall mean the construction of a vessel with the aid of qualified withdrawals. (3) Reconstruction of qualified agreement vessels. Once an agreement has been entered into, the term reconstruction of a qualified agreement vessel shall mean any improvement to an existing vessel which increases the vessel's competitiveness and involves … |
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CREATE TABLE cfr_sections (
section_id TEXT PRIMARY KEY,
title_number INTEGER,
title_name TEXT,
chapter TEXT,
subchapter TEXT,
part_number TEXT,
part_name TEXT,
subpart TEXT,
subpart_name TEXT,
section_number TEXT,
section_heading TEXT,
agency TEXT,
authority TEXT,
source_citation TEXT,
amendment_citations TEXT,
full_text TEXT
);
CREATE INDEX idx_cfr_title ON cfr_sections(title_number);
CREATE INDEX idx_cfr_part ON cfr_sections(part_number);
CREATE INDEX idx_cfr_agency ON cfr_sections(agency);