---
kind: "section"
citation: "46 U.S.C. § 56102"
title: "46"
title_heading: "Shipping"
number: "56102"
heading: "Additional controls during war or national emergency"
release: "119-102"
url: "https://uscodex.org/usc/46/56102"
units:
  - "Subtitle V — Merchant Marine"
  - "Part E — Control of Merchant Marine Capabilities"
  - "Chapter 561 — Restrictions on Transfers"
---

# §56102. Additional controls during war or national emergency

- (a) **In General.—** During war, or a national emergency declared by Presidential proclamation, a person may not, without the approval of the Secretary of Transportation—
  - (1) place under foreign registry a [vessel](/usc/46/115.md) owned in whole or in part by a [citizen of the United States](/usc/46/104.md) or a corporation incorporated under the laws of the [United States](/usc/46/114.md) or of a [State](/usc/46/112.md);
  - (2) sell, mortgage, lease, charter, deliver, or in any other manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any other manner transfer, to a person not a [citizen of the United States](/usc/46/104.md)—
    - (A) a [vessel](/usc/46/115.md) owned as described in [paragraph (1)](#a-1), or an interest therein;
    - (B) a [vessel](/usc/46/115.md) documented under the laws of the [United States](/usc/46/114.md), or an interest therein; or
    - (C) a facility for building or repairing [vessels](/usc/46/115.md), or an interest therein;
  - (3) issue, assign, or transfer to a person not a [citizen of the United States](/usc/46/104.md) an instrument of indebtedness secured by a mortgage of a [vessel](/usc/46/115.md) to a trustee, by an assignment of an owner’s interest in a [vessel](/usc/46/115.md) under construction to a trustee, or by a mortgage of a facility for building or repairing [vessels](/usc/46/115.md) to a trustee, unless the trustee or a substitute trustee is approved by the Secretary under [subsection (b)](#b);
  - (4) enter into an agreement or understanding to construct a [vessel](/usc/46/115.md) in the [United States](/usc/46/114.md) for, or to be delivered to, a person not a [citizen of the United States](/usc/46/104.md) without expressly stipulating that construction will not begin until after the war or national emergency has ended;
  - (5) enter into an agreement or understanding whereby there is vested in, or for the benefit of, a person not a [citizen of the United States](/usc/46/104.md) the controlling interest in a corporation that is incorporated under the laws of the [United States](/usc/46/114.md) or a [State](/usc/46/112.md) and that owns a [vessel](/usc/46/115.md) or facility for building or repairing [vessels](/usc/46/115.md); or
  - (6) cause or procure a [vessel](/usc/46/115.md), constructed in whole or in part in the [United States](/usc/46/114.md) and never cleared for a foreign port, to depart from a port of the [United States](/usc/46/114.md) before it has been documented under the laws of the [United States](/usc/46/114.md).
- (b) **Trustees.—**
  - (1) **Approval.—** The Secretary shall approve a trustee or substitute trustee under [subsection (a)(3)](#a-3) if and only if the trustee is a bank or trust company that—
    - (A) is organized as a corporation, and is doing business, under the laws of the [United States](/usc/46/114.md) or a [State](/usc/46/112.md);
    - (B) is authorized under those laws to exercise corporate trust powers;
    - (C) is a [citizen of the United States](/usc/46/104.md);
    - (D) is subject to supervision or examination by Federal or [State](/usc/46/112.md) authority; and
    - (E) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000.
  - (2) **Disapproval.—** If a trustee or substitute trustee ceases to meet the conditions in [paragraph (1)](#b-1), the Secretary shall disapprove the trustee or substitute trustee. After the disapproval, the restrictions on transfer or assignment without the Secretary’s approval in [subsection (a)(3)](#a-3) apply.
  - (3) **Operation of vessel.—** During a period when [subsection (a)](#a) applies, a trustee referred to in [subsection (a)(3)](#a-3), even though approved as a trustee by the Secretary, may not operate the [vessel](/usc/46/115.md) under the mortgage or assignment without the Secretary’s approval.
- (c) **Status of Prohibited Transaction.—** A transaction in violation of this section is void.
- (d) **Recovery of Consideration.—**
  - (1) **In general.—** A person that deposited or paid consideration in connection with a transaction prohibited by this section may recover the consideration after tender of the [vessel](/usc/46/115.md), facility, stock, or other security, or interest therein, to the person entitled to it, or the forfeiture thereof to the [United States](/usc/46/114.md) Government.
  - (2) **Exception.—** [Paragraph (1)](#d-1) does not apply if the person in whose interest the consideration was deposited, or to whom it was paid, entered into the transaction in the belief that the person depositing or paying the consideration was a [citizen of the United States](/usc/46/104.md).
- (e) **Penalties.—**
  - (1) **Criminal penalty.—** A person that violates, or attempts or conspires to violate, this section shall be fined under [title 18](/usc/18.md), imprisoned for not more than 5 years, or both.
  - (2) **Forfeiture.—** The following shall be forfeited to the Government:
    - (A) A [vessel](/usc/46/115.md), a facility for building or repairing [vessels](/usc/46/115.md), or an interest in a [vessel](/usc/46/115.md) or such a facility, that is sold, mortgaged, leased, chartered, delivered, transferred, or documented, or agreed to be sold, mortgaged, leased, chartered, delivered, transferred, or documented, in violation of this section.
    - (B) Stock and other securities sold or transferred, or agreed to be sold or transferred, in violation of this section.
    - (C) A [vessel](/usc/46/115.md) departing in violation of [subsection (a)(6)](#a-6).

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1652.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 56102(a) | 46 App.:835(a)–(c) (less provisos), (d)–(f). | Sept. 7, 1916, ch. 451, § 37, as added July 15, 1918, ch. 152, § 4, 40 Stat. 901; Exec. Order No. 6166, § 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, § 204, title IX, § 904, 49 Stat. 1987, 2016; Pub. L. 89–346, § 2, Nov. 8, 1965, 79 Stat. 1306; Pub. L. 97–31, § 12(30), Aug. 6, 1981, 95 Stat. 156. |
| 56102(b) | 46 App.:835(c) (provisos). |  |
| 56102(c) | 46 App.:835 (2d par. after cl. (f), last par. words before 9th comma). |  |
| 56102(d) | 46 App.:835 (last par. words after 9th comma). |  |
| 56102(e) | 46 App.:835 (1st, 3d pars. after cl. (f)). |  |

In this section, the words “facility for building or repairing vessels” are substituted for “shipyard, dry dock, shipbuilding or ship-repairing plant or facility” (or similar language) to eliminate unnecessary words.

In subsection (a)(1), the words “transfer to” and “or flag” are omitted as surplus. The words “Territory, District, or possession thereof” are omitted as unnecessary because of the definition of “State” in chapter 1 of the revised title.

In subsection (a)(3), the words “instrument of indebtedness” are substituted for “bond, note, or other evidence of indebtedness” to eliminate unnecessary words. The words “right, title, or” are omitted as unnecessary.

In subsection (a)(5), the words “or the majority of the voting power” are omitted as covered by “controlling interest”.

In subsection (b)(1), before subparagraph (A), the words “and only if” are added for clarity because the Secretary is required to disapprove a trustee that ceases to meet the specified conditions.

Subsections (c) and (d) are substituted for the source provisions to eliminate unnecessary words.

In subsection (e)(1), the words “guilty of a misdemeanor” are omitted, and the words “fined under title 18” are substituted for “punishable by a fine of not more than $5000”, because of chapter 227 of title 18.