---
kind: "section"
citation: "46 U.S.C. § 53405"
title: "46"
title_heading: "Shipping"
number: "53405"
heading: "Obligations and rights under operating agreements"
release: "119-102"
url: "https://uscodex.org/usc/46/53405"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 534 — Tanker Security Fleet"
---

# §53405. Obligations and rights under operating agreements

- (a) **Operation of Vessel.—** An operating agreement under this chapter shall require that, during the period the [vessel](/usc/46/115.md) covered by the agreement is operating under the agreement the [vessel](/usc/46/115.md) shall—
  - (1) be operated in the [United States](/usc/46/114.md) [foreign commerce](/usc/46/53401.md?p=1), mixed [United States](/usc/46/114.md) [foreign commerce](/usc/46/53401.md?p=1) and domestic trade allowed under a registry endorsement issued under [section 12111 of this title](/usc/46/12111.md), in foreign-to-[foreign commerce](/usc/46/53401.md?p=1), or under a charter to the [United States](/usc/46/114.md);
  - (2) not be operated in the coastwise trade except as described in [paragraph (1)](#a-1); and
  - (3) be documented under [chapter 121](/usc/46/chstII-ptH-ch121.md) of this title.
- (b) **Annual Payments by the Secretary.—**
  - (1) **In general.—** An operating agreement under this chapter shall require, subject to the availability of appropriations, that the [Secretary](/usc/46/53401.md?p=6) make a payment to the [program participant](/usc/46/53401.md?p=5) in accordance with [section 53406](/usc/46/53406.md).
  - (2) **Operating agreement is an obligation of the united states government.—** An operating agreement under this chapter constitutes a contractual [obligation](/usc/46/53701.md?p=9) of the [United States](/usc/46/114.md) Government to pay the amounts provided for in the agreement to the extent of actual appropriations.
- (c) **Documentation Requirement.—** Each [vessel](/usc/46/115.md) covered by the operating agreement, including an agreement terminated under [section 53404(c)(2)](/usc/46/53404.md?p=c-2), shall remain documented under [chapter 121](/usc/46/chstII-ptH-ch121.md) of this title until the date the operating agreement would terminate according to its terms.
- (d) **National Security Requirements.—**
  - (1) **In general.—** A [program participant](/usc/46/53401.md?p=5) with respect to an operating agreement, including an agreement terminated under [section 53404(c)(2)](/usc/46/53404.md?p=c-2), shall continue to be bound by the provisions of [section 53407](/usc/46/53407.md) until the date the operating agreement would terminate according to its terms.
  - (2) **Emergency preparedness agreement.—** All terms and conditions of an Emergency Preparedness Agreement entered into under [section 53407](/usc/46/53407.md) shall remain in effect until the date the operating agreement would terminate according to its terms, except that the terms of such Emergency Preparedness Agreement may be modified by the mutual consent of the [program participant](/usc/46/53401.md?p=5), the [Secretary](/usc/46/53401.md?p=6) of Transportation, and the [Secretary](/usc/46/53401.md?p=6) of Defense.
- (e) **Transfer of Operating Agreements.—** A [program participant](/usc/46/53401.md?p=5) may transfer an operating agreement (including all rights and [obligations](/usc/46/53701.md?p=9) under the agreement) to any [person](/usc/46/53401.md?p=3) that is eligible to enter into that operating agreement under this chapter, if the [Secretary](/usc/46/53401.md?p=6) of Transportation and the [Secretary](/usc/46/53401.md?p=6) of Defense determine that the transfer is in the best interests of the [United States](/usc/46/114.md).
- (f) **Replacement of Vessels Covered by Agreements.—** A [program participant](/usc/46/53401.md?p=5) may replace the [vessel](/usc/46/115.md) with another [vessel](/usc/46/115.md) that is eligible to be included in the Fleet under [section 53402(b)](/usc/46/53402.md?p=b), if the [Secretary](/usc/46/53401.md?p=6) of Transportation, in coordination with the [Secretary](/usc/46/53401.md?p=6) of Defense, approves the replacement of the [vessel](/usc/46/115.md). No court shall have jurisdiction to review a decision by the [Secretary](/usc/46/53401.md?p=6) of Transportation or the [Secretary](/usc/46/53401.md?p=6) of Defense pertaining to the replacement of a [vessel](/usc/46/115.md) under this section.

## Source credit

(Added Pub. L. 116–283, div. C, title XXXV, § 3511(a), Jan. 1, 2021, 134 Stat. 4414.)