Page:United States Statutes at Large Volume 120.djvu/1683

 120 STAT. 1652

PUBLIC LAW 109–304—OCT. 6, 2006

‘‘(2) an operating agreement covering the vessel under chapter 531 of this title has expired. ‘‘(d) STATUS OF PROHIBITED TRANSACTION.—A charter, sale, or transfer of a vessel, or of an interest in or control of a vessel, in violation of this section is void. ‘‘(e) PENALTIES.— ‘‘(1) CRIMINAL PENALTY.—A person that knowingly sells, charters, or transfers a vessel, or an interest in or control of a vessel, in violation of this section shall be fined under title 18, imprisoned for not more than 5 years, or both. ‘‘(2) CIVIL PENALTY.—A person that sells, charters, or transfers a vessel, or an interest in or control of a vessel, in violation of this section is liable to the United States Government for a civil penalty of not more than $10,000 for each violation. ‘‘(3) FORFEITURE.—A documented vessel may be seized by and forfeited to the Government if, in violation of this section, a person— ‘‘(A) knowingly sells, charters, or transfers the vessel or an interest in or control of the vessel; or ‘‘(B) places the vessel under foreign registry or operates the vessel under the authority of a foreign country. ‘‘§ 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 owned in whole or in part by a citizen of the United States or a corporation incorporated under the laws of the United States or of a State; ‘‘(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— ‘‘(A) a vessel owned as described in paragraph (1), or an interest therein; ‘‘(B) a vessel documented under the laws of the United States, or an interest therein; or ‘‘(C) a facility for building or repairing vessels, or an interest therein; ‘‘(3) issue, assign, or transfer to a person not a citizen of the United States an instrument of indebtedness secured by a mortgage of a vessel to a trustee, by an assignment of an owner’s interest in a vessel under construction to a trustee, or by a mortgage of a facility for building or repairing vessels to a trustee, unless the trustee or a substitute trustee is approved by the Secretary under subsection (b); ‘‘(4) enter into an agreement or understanding to construct a vessel in the United States for, or to be delivered to, a person not a citizen of the United States 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 the controlling interest in a corporation that is incorporated under the laws of the United States or

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