Part A - General

TITLE 46 - US CODE - CHAPTER 501 - POLICY, STUDIES, AND REPORTS

46 USC 50101 - Objectives and policy

(a) Objectives.— 
It is necessary for the national defense and the development of the domestic and foreign commerce of the United States that the United States have a merchant marine
(1) sufficient to carry the waterborne domestic commerce and a substantial part of the waterborne export and import foreign commerce of the United States and to provide shipping service essential for maintaining the flow of the waterborne domestic and foreign commerce at all times;
(2) capable of serving as a naval and military auxiliary in time of war or national emergency;
(3) owned and operated as vessels of the United States by citizens of the United States;
(4) composed of the best-equipped, safest, and most suitable types of vessels and manned with a trained and efficient citizen personnel; and
(5) supplemented by efficient facilities for building and repairing vessels.
(b) Policy.— 
It is the policy of the United States to encourage and aid the development and maintenance of a merchant marine satisfying the objectives described in subsection (a).

46 USC 50102 - Survey of merchant marine

(a) In General.— 
The Secretary of Transportation shall survey the merchant marine of the United States to determine whether replacements and additions are required to carry out the objectives and policy of section 50101 of this title. The Secretary shall study, perfect, and adopt a long-range program for replacements and additions that will result, as soon as practicable, in
(1) an adequate and well-balanced merchant fleet, including vessels of all types, that will provide shipping service essential for maintaining the flow of foreign commerce by vessels designed to be readily and quickly convertible into transport and supply vessels in a time of national emergency;
(2) ownership and operation of the fleet by citizens of the United States insofar as practicable;
(3) vessels designed to afford the best and most complete protection for passengers and crew against fire and all marine perils; and
(4) an efficient capacity for building and repairing vessels in the United States with an adequate number of skilled personnel to provide an adequate mobilization base.
(b) Cooperation With Secretary of Navy.— 
In carrying out subsection (a)(1), the Secretary of Transportation shall cooperate closely with the Secretary of the Navy as to national defense requirements.

46 USC 50103 - Determinations of essential services

(a) Essential Services, Routes, and Lines.— 

(1) In general.— 
The Secretary of Transportation shall investigate, determine, and keep current records of the ocean services, routes, and lines from ports in the United States, or in the territories and possessions of the United States, to foreign markets, which the Secretary determines to be essential for the promotion, development, expansion, and maintenance of the foreign commerce of the United States. In making such a determination, the Secretary shall consider and give due weight to
(A) the cost of maintaining each line;
(B) the probability that a line cannot be maintained except at a heavy loss disproportionate to the benefit to foreign trade;
(C) the number of voyages and types of vessels that should be employed in a line;
(D) the intangible benefit of maintaining a line to the foreign commerce of the United States, the national defense, and other national requirements; and
(E) any other facts and conditions a prudent business person would consider when dealing with the persons own business.
(2) Saint lawrence seaway.— 
For purposes of paragraph (1), the Secretary shall establish services, routes, and lines that reflect the seasonal closing of the Saint Lawrence Seaway and provide for alternate routing of vessels through a different range of ports during that closing to maintain continuity of service on a year-round basis.
(b) Bulk Cargo Carrying Services.— 
The Secretary shall investigate, determine, and keep current records of the bulk cargo carrying services that should be provided by vessels of the United States (whether or not operating on particular services, routes, or lines) for the promotion, development, expansion, and maintenance of the foreign commerce of the United States and the national defense or other national requirements.
(c) Types of Vessels.— 
The Secretary shall investigate, determine, and keep current records of the type, size, speed, method of propulsion, and other requirements of the vessels, including express-liner or super-liner vessels, that should be employed in
(1) the services, routes, or lines described in subsection (a), and the frequency and regularity of the voyages of the vessels, with a view to furnishing adequate, regular, certain, and permanent service; and
(2) the bulk cargo carrying services described in subsection (b).

46 USC 50104 - Studies of general maritime problems

The Secretary of Transportation shall study all maritime problems arising in carrying out the policy in section 50101 of this title.

46 USC 50105 - Studies and cooperation relating to the construction of vessels

(a) Relative Costs and New Designs.— 
The Secretary of Transportation shall investigate, determine, and keep current records of
(1) the relative cost of construction of comparable vessels in the United States and in foreign countries; and
(2) new designs, new methods of construction, and new types of equipment for vessels.
(b) Rules, Classifications, and Ratings.— 
The Secretary shall examine the rules under which vessels are constructed abroad and in the United States and the methods of classifying and rating the vessels.
(c) Collaboration With Owners and Builders.— 
The Secretary shall collaborate with vessel owners and shipbuilders in developing plans for the economical construction of vessels and their propelling machinery, of most modern economical types, giving thorough consideration to all well-recognized means of propulsion and taking into account the benefits from standardized production where practicable and desirable.
(d) Express-Liner and Super-Liner Vessels.— 
The Secretary shall study and cooperate with vessel owners in devising means by which there may be constructed, by or with the aid of the United States Government, express-liner or super-liner vessels comparable to those of other nations, especially with a view to their use in a national emergency, and the use of transoceanic aircraft service in connection with or in lieu of those vessels.

46 USC 50106 - Studies on the operation of vessels

(a) Relative Costs.— 
The Secretary of Transportation shall investigate, determine, and keep current records of the relative cost of marine insurance, maintenance, repairs, wages and subsistence of officers and crews, and all other items of expense, in the operation of comparable vessels under the laws and regulations of the United States and those of the foreign countries whose vessels are substantial competitors of American vessels.
(b) Shipyards.— 
The Secretary shall investigate, determine, and keep current records of the number, location, and efficiency of shipyards in the United States.
(c) Navigation Laws.— 
The Secretary shall examine the navigation laws and regulations of the United States and make such recommendations to Congress as the Secretary considers proper for the amendment, improvement, and revision of those laws and for the development of the merchant marine of the United States.

46 USC 50107 - Studies on marine insurance

The Secretary of Transportation shall
(1) examine into the subject of marine insurance, the number of companies in the United States, domestic and foreign, engaging in marine insurance, the extent of the insurance on hulls and cargoes placed or written in the United States, and the extent of reinsurance of American maritime risks in foreign companies; and
(2) ascertain what steps may be necessary to develop an ample marine insurance system as an aid in the development of the merchant marine of the United States.

46 USC 50108 - Studies on cargo carriage and cargo containers

(a) Studies.— 
The Secretary of Transportation shall study
(1) the methods of encouraging the development and implementation of new concepts for the carriage of cargo in the domestic and foreign commerce of the United States; and
(2) the economic and technological aspects of the use of cargo containers as a method of carrying out the policy in section 50101 of this title.
(b) Restriction.— 
In carrying out subsection (a) and the policy in section 50101 of this title, the United States Government may not give preference as between carriers based on the length, height, or width of cargo containers or the length, height, or width of cargo container cells. This restriction applies to all existing container vessels and any container vessel to be constructed or rebuilt.

46 USC 50109 - Miscellaneous studies

(a) Foreign Subsidies.— 
The Secretary of Transportation shall investigate, determine, and keep current records of the extent and character of the governmental aid and subsidies granted by foreign governments to their merchant marine.
(b) Laws Applicable to Aircraft.— 
The Secretary shall investigate, determine, and keep current records of the provisions of law relating to shipping that should be made applicable to aircraft engaged in foreign commerce to further the policy in section 50101 of this title, and any appropriate legislation in this regard.
(c) Aid for Cotton, Coal, Lumber, and Cement.— 
The Secretary shall investigate, determine, and keep current records of the advisability of enactment of suitable legislation authorizing the Secretary, in an economic or commercial emergency, to aid farmers and producers of cotton, coal, lumber, and cement in any section of the United States in the transportation and landing of their products in any foreign port, which products can be carried in dry-cargo vessels by reducing rates, by supplying additional tonnage to any American operator, or by operation of vessels directly by the Secretary, until the Secretary considers the special rate reduction and operation unnecessary for the benefit of those farmers and producers.
(d) Intercoastal and Inland Water Transportation.— 
The Secretary shall investigate, determine, and keep current records of intercoastal and inland water transportation, including their relation to transportation by land and air.
(e) Obsolete Tonnage and Tramp Service.— 
The Secretary shall make studies and reports to Congress on
(1) the scrapping or removal from service of old or obsolete merchant tonnage owned by the United States Government or in use in the merchant marine; and
(2) tramp shipping service and the advisability of citizens of the United States participating in that service with vessels under United States registry.
(f) Mortgage Loans.— 
The Secretary shall investigate the legal status of mortgage loans on vessel property, with a view to the means of improving the security of those loans and of encouraging investment in American shipping.

46 USC 50110 - Securing preference to vessels of the United States

(a) Possibilities of Promoting Carriage.— 
The Secretary of Transportation shall investigate, determine, and keep current records of the possibilities of promoting the carriage of United States foreign trade in vessels of the United States.
(b) Inducements to Importers and Exporters.— 
The Secretary shall study and cooperate with vessel owners in devising means by which the importers and exporters of the United States can be induced to give preference to vessels of the United States.
(c) Liaison With Agencies and Organizations.— 
The Secretary shall establish and maintain liaison with such other agencies of the United States Government, and with such representative trade organizations throughout the United States, as may be concerned, directly or indirectly, with any movement of commodities in the waterborne export and import foreign commerce of the United States, for the purpose of securing preference to vessels of the United States in the shipment of those commodities.

46 USC 50111 - Reports to Congress

(a) In General.— 
Not later than April 1 of each year, the Secretary of Transportation shall submit a report to Congress. The report shall include, with respect to activities of the Secretary under this subtitle, the results of investigations, a summary of transactions, a statement of all expenditures and receipts, the purposes for which all expenditures were made, and any recommendations for legislation.
(b) Administered and Oversight Funds.— 
The Secretary, in the report under subsection (a) and in the annual budget estimate for the Maritime Administration submitted to Congress, shall state separately the amount, source, intended use, and nature of any funds (other than funds appropriated to the Administration or to the Secretary of Transportation for use by the Administration) administered, or subject to oversight, by the Administration.
(c) Additional Recommendations for Legislation.— 
The Secretary, from time to time, shall make recommendations to Congress for legislation the Secretary considers necessary to better achieve the objectives and policy of section 50101 of this title.

46 USC 50112 - National Maritime Enhancement Institutes

(a) Designation.— 
The Secretary of Transportation may designate National Maritime Enhancement Institutes.
(b) Activities.— 
Activities undertaken by an institute may include
(1) conducting research about methods to improve the performance of maritime industries;
(2) enhancing the competitiveness of domestic maritime industries in international trade;
(3) forecasting trends in maritime trade;
(4) assessing technological advancements;
(5) developing management initiatives and training;
(6) analyzing economic and operational impacts of regulatory policies and international negotiations or agreements pending before international bodies;
(7) assessing the compatibility of domestic maritime infrastructure systems with overseas transport systems;
(8) fostering innovations in maritime transportation pricing; and
(9) improving maritime economics and finance.
(c) Application for Designation.— 
An institution seeking designation as a National Maritime Enhancement Institute shall submit an application under regulations prescribed by the Secretary.
(d) Criteria for Designation.— 
The Secretary shall designate an institute under this section on the basis of the following criteria:
(1) The demonstrated research and extension resources available to the applicant for carrying out the activities specified in subsection (b).
(2) The ability of the applicant to provide leadership in making national and regional contributions to the solution of both long-range and immediate problems of the domestic maritime industry.
(3) The existence of an established program of the applicant encompassing research and training directed to enhancing maritime industries.
(4) The demonstrated ability of the applicant to assemble and evaluate pertinent information from national and international sources and to disseminate results of maritime industry research and educational programs through a continuing education program.
(5) The qualification of the applicant as a nonprofit">nonprofit institution of higher learning.
(e) Financial Awards.— 
The Secretary may make awards on an equal matching basis to an institute designated under subsection (a) from amounts appropriated. The aggregate annual amount of the Federal share of the awards by the Secretary may not exceed $500,000.
(f) University Transportation Research Funds.— 
The Secretary may make a grant under section 5505 of title 49 to an institute designated under subsection (a) for maritime and maritime intermodal research under that section as if the institute were a university transportation center. In making a grant, the Secretary, through the Research and Innovative Technology Administration, shall advise the Maritime Administration on the availability of funds for the grants and consult with the Administration on making the grants.

46 USC 50113 - Use and performance reports by operators of vessels

(a) Filing Requirement.— 
The Secretary of Transportation by regulation may require the operator of a vessel in the waterborne foreign commerce of the United States to file such report, account, record, or memorandum on the use and performance of the vessel as the Secretary considers desirable to assist in carrying out this subtitle. The report, account, record, or memorandum shall be signed and verified, and be filed at the times and in the manner, as provided by regulation.
(b) Civil Penalty.— 
An operator not filing a report, account, record, or memorandum required by the Secretary under this section is liable to the United States Government for a civil penalty of $50 for each day of the violation. A penalty imposed under this section on the operator of a vessel constitutes a lien on the vessel involved in the violation. A civil action in rem to enforce the lien may be brought in the district court of the United States for any district in which the vessel is found. The Secretary may remit or mitigate any penalty imposed under this section.

TITLE 46 - US CODE - CHAPTER 503 - ADMINISTRATIVE

46 USC 50301 - Vessel Operations Revolving Fund

(a) In General.— 
There is a Vessel Operations Revolving Fund for use by the Secretary of Transportation in carrying out duties and powers related to vessel operations, including charter, operation, maintenance, repair, reconditioning, and improvement of merchant vessels under the jurisdiction of the Secretary. The Fund has a working capital of $20,000,000, to remain available until expended.
(b) Relationship to Other Laws.— 
Notwithstanding any other law, rates for shipping services provided under the Fund shall be prescribed by the Secretary and the Fund shall be credited with receipts from vessel operations conducted under the Fund. Sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 (50 App. U.S.C. 1291 (a), (c), 1293 (c), 1294), apply to those operations and to seamen employed through general agents as employees of the United States Government. Notwithstanding any other law on the employment of persons by the Government, the seamen may be employed in accordance with customary commercial practices in the maritime industry.
(c) Advancements.— 
With the approval of the Director of the Office of Management and Budget, the Secretary may advance amounts the Secretary considers necessary, but not more than 2 percent of vessel operating expenses, from the Fund to the appropriation Salaries and Expenses in carrying out duties and powers related to vessel operations, without regard to the limitations on amounts stated in that appropriation.
(d) Transfers.— 
The unexpended balances of working funds or of allocation accounts established after January 1, 1951, for the activities provided for in subsection (a), and receipts received from those activities, may be transferred to the Fund, which shall be available for the purposes of those working funds or allocation accounts.
(e) Limitation.— 

(1) In general.— 
Amounts made available to the Secretary for maritime activities by this section or any other law may not be used to pay for a vessel described in paragraph (2) unless the compensation to be paid is computed under section 56303 of this title as that section is interpreted by the Comptroller General.
(2) Applicable vessels.— 
Paragraph (1) applies to a vessel
(A) the title to which is acquired by the Government by requisition or purchase;
(B) the use of which is taken by requisition or agreement; or
(C) lost while insured by the Government.
(3) Nonapplicable vessels.— 
Paragraph (1) does not apply to a vessel under a construction-differential subsidy contract.
(f) Availability for Additional Purposes.— 
The Fund is available for
(1) necessary expenses incurred in the protection, preservation, maintenance, acquisition, or use of vessels involved in mortgage foreclosure or forfeiture proceedings instituted by the Government, including payment of prior claims and liens, expenses of sale, or other related charges;
(2) necessary expenses incident to the redelivery and lay-up, in the United States, of vessels chartered as of June 20, 1956, under agreements not calling for their return to the Government;
(3) the activation, repair, and deactivation of merchant vessels chartered for limited emergency purposes during fiscal year 1957 under the jurisdiction of the Secretary; and
(4) payment of expenses of custody and maintenance of Government-owned vessels not in the National Defense Reserve Fleet.
(g) Expenses and Receipts Related to Charter Operations.— 
The Fund is available for expenses incurred in activating, repairing, and deactivating merchant vessels chartered under the jurisdiction of the Secretary. Receipts from charter operations of Government-owned vessels under the jurisdiction of the Secretary shall be credited to the Fund.

46 USC 50302 - Port development

(a) General Requirements.— 
With the objective of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which the Secretary of Transportation has jurisdiction, the Secretary, in cooperation with the Secretary of the Army, shall
(1) investigate territorial regions and zones tributary to ports, taking into consideration the economies of transportation by rail, water, and highway and the natural direction of the flow of commerce;
(2) investigate the causes of congestion of commerce at ports and applicable remedies;
(3) investigate the subject of water terminals, including the necessary docks, warehouses, and equipment, to devise and suggest the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between water carriers and rail carriers;
(4) consult with communities on the appropriate location and plan of construction of wharves, piers, and water terminals;
(5) investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and
(6) investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight that naturally would pass through those ports.
(b) Submission of Findings to Surface Transportation Board.— 
After an investigation under subsection (a), if the Secretary of Transportation believes that the rates or practices of a rail carrier subject to the jurisdiction of the Surface Transportation Board are detrimental to the objective specified in subsection (a), or that new rates or practices, new or additional port terminal facilities, or affirmative action by a rail carrier is necessary to promote that objective, the Secretary may submit findings to the Board for action the Board considers appropriate under existing law.

46 USC 50303 - Operating property and extending term of notes

(a) General Authority.— 
The Secretary of Transportation may
(1) operate or lease docks, wharves, piers, or real property under the Secretarys control; and
(2) make extensions and accept renewals of
(A) promissory notes and other evidences of indebtedness on property; and
(B) mortgages and other contracts securing the property.
(b) Terms of Transactions.— 
A transaction under subsection (a) shall be on terms the Secretary considers necessary to carry out the purposes of this subtitle, but consistent with sound business practice.
(c) Availability of Amounts.— 
Amounts received by the Secretary from a transaction under this section are available for expenditure by the Secretary as provided in this subtitle.

46 USC 50304 - Sale and transfer of property

(a) Authority To Sell.— 
The Secretary of Transportation may sell property (other than vessels transferred under section 4 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 990)) on terms the Secretary considers appropriate.
(b) Transfers From Military to Civilian Control.— 
When the President considers it in the interest of the United States, the President may transfer to the Secretary of Transportation possession and control of property described in the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of a military department.
(c) Transfers From Civilian to Military Control.— 
When the President considers it necessary, the President by executive order may transfer to the Secretary of a military department possession and control of property described in section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of Transportation. The Presidents order shall state the need for the transfer and the period of the need. When the President decides that the need has ended, the possession and control shall revert to the Secretary of Transportation. The property may not be sold except as provided by law.

46 USC 50305 - Appointment of trustee or receiver and operation of vessels

(a) Appointment of Trustees and Receivers.— 

(1) Appointment of secretary.— 
In a proceeding in a court of the United States in which a trustee or receiver may be appointed for a corporation operating a vessel of United States registry between the United States and a foreign country, on which the United States Government holds a mortgage, the court may appoint the Secretary of Transportation as the sole trustee or receiver (subject to the direction of the court) if
(A) the court finds that the appointment will
(i) inure to the advantage of the estate and the parties in interest; and
(ii) tend to carry out the purposes of this subtitle; and
(B) the Secretary expressly consents to the appointment.
(2) Appointment of other person.— 
The appointment of another person as trustee or receiver without a hearing becomes effective when ratified by the Secretary, but the Secretary may demand a hearing.
(b) Operation of Vessels.— 

(1) In general.— 
If the court is unwilling to allow the trustee or receiver to operate the vessel in foreign commerce without financial aid from the Government pending termination of the proceeding, and the Secretary certifies to the court that the continued operation of the vessel is essential to the foreign commerce of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a managing agent or operator employed by the Secretary. The Secretary must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The Secretary also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver.
(2) Payment of operating losses and other amounts.— 
The Secretary has no claim against the corporation, its estate, or its assets for operating losses paid by the Secretary, but the Secretary may pay amounts for depreciation the Secretary considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the Secretary resulting from the operation of the vessel.
(3) Deemed operation by government.— 
A vessel operated by the Secretary under this subsection is deemed to be a vessel operated by the United States under chapter 309 of this title.

46 USC 50306 - Requiring testimony and records in investigations

(a) In General.— 
In conducting an investigation that the Secretary of Transportation considers necessary and proper to carry out this subtitle, the Secretary may administer oaths, take evidence, and subpoena persons to testify and produce documents relevant to the matter under investigation. Persons may be required to attend or produce documents from any place in the United States at any designated place of hearing.
(b) Fees and Mileage.— 
Persons subpoenaed by the Secretary under subsection (a) shall be paid the same fees and mileage paid to witnesses in the courts of the United States.
(c) Enforcement of Subpoenas.— 
If a person disobeys a subpoena issued under subsection (a), the Secretary may seek an order enforcing the subpoena from the district court of the United States for the district in which the person resides or does business. Process may be served in the judicial district in which the person resides or is found. The court may issue an order to obey the subpoena and punish a refusal to obey as a contempt of court.

TITLE 46 - US CODE - CHAPTER 505 - OTHER GENERAL PROVISIONS

46 USC 50501 - Entities deemed citizens of the United States

(a) In General.— 
In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States.
(b) Additional Requirements for Corporations.— 
In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)
(1) it is incorporated under the laws of the United States or a State;
(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and
(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum.
(c) Determination of Controlling Corporate Interest.— 
The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if
(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) the majority of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
(d) Determination of 75 Percent Corporate Interest.— 
At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if
(1) title to at least 75 percent of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) at least 75 percent of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which more than 25 percent of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of more than 25 percent of any interest in the corporation is given to or permitted to be exercised by a person not a citizen of the United States.

46 USC 50502 - Applicability to receivers, trustees, successors, and assigns

This subtitle applies to receivers, trustees, successors, and assigns of any person to whom this subtitle applies.

46 USC 50503 - Oceanographic research vessels

An oceanographic research vessel (as defined in section 2101 of this title) is deemed not to be engaged in trade or commerce.

46 USC 50504 - Sailing school vessels

(a) Definitions.— 
In this section, the terms sailing school instructor, sailing school student, and sailing school vessel have the meaning given those terms in section 2101 of this title.
(b) Not Seamen.— 
A sailing school student or sailing school instructor is deemed not to be a seaman under
(1) parts B, F, and G of subtitle II of this title; or
(2) the maritime law doctrines of maintenance and cure or warranty of seaworthiness.
(c) Not Merchant Vessel or Engaged in Trade or Commerce.— 
A sailing school vessel is deemed not to be
(1) a merchant vessel under section 11101 (a)(c) of this title; or
(2) a vessel engaged in trade or commerce.
(d) Evidence of Financial Responsibility.— 
The owner or charterer of a sailing school vessel shall maintain evidence of financial responsibility to meet liability for death or injury to sailing school students and sailing school instructors on a voyage on the vessel. The amount of financial responsibility shall be at least $50,000 for each student and instructor. Financial responsibility under this subsection may be evidenced by insurance or other adequate financial resources.