PUBLIC LAW 109–304—OCT. 6, 2006
120 STAT. 1653
a State and that owns a vessel or facility for building or repairing vessels; or ‘‘(6) cause or procure a vessel, constructed in whole or in part in the United States and never cleared for a foreign port, to depart from a port of the United States before it has been documented under the laws of the United States. ‘‘(b) TRUSTEES.— ‘‘(1) APPROVAL.—The Secretary shall approve a trustee or substitute trustee under subsection (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 or a State; ‘‘(B) is authorized under those laws to exercise corporate trust powers; ‘‘(C) is a citizen of the United States; ‘‘(D) is subject to supervision or examination by Federal or State 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), 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) apply. ‘‘(3) OPERATION OF VESSEL.—During a period when subsection (a) applies, a trustee referred to in subsection (a)(3), even though approved as a trustee by the Secretary, may not operate the vessel 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, facility, stock, or other security, or interest therein, to the person entitled to it, or the forfeiture thereof to the United States Government. ‘‘(2) EXCEPTION.—Paragraph (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. ‘‘(e) PENALTIES.— ‘‘(1) CRIMINAL PENALTY.—A person that violates, or attempts or conspires to violate, this section shall be fined under title 18, imprisoned for not more than 5 years, or both. ‘‘(2) FORFEITURE.—The following shall be forfeited to the Government: ‘‘(A) A vessel, a facility for building or repairing vessels, or an interest in a vessel 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.
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