Page:United States Statutes at Large Volume 120.djvu/1690

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1659

its further preservation, the Secretary may scrap the vessel or sell the vessel for cash. ‘‘(b) SELLING PROCEDURE.—The sale of a vessel under subsection (a) shall be made on the basis of competitive sealed bids, after an appraisal and due advertisement. The purchaser does not have to be a citizen of the United States. The purchaser shall provide a surety bond, with a surety approved by the Secretary, to ensure that the vessel will not be operated in the foreign trade of the United States at any time within 10 years after the sale, in competition with a vessel owned by a citizen of the United States and documented under the laws of the United States. ‘‘§ 57103. Sale of obsolete vessels in National Defense Reserve Fleet ‘‘(a) IN GENERAL.—The Secretary of Transportation may convey the right, title, and interest of the United States Government in any vessel of the National Defense Reserve Fleet that has been identified by the Secretary as an obsolete vessel of insufficient value to warrant its further preservation, if the recipient— ‘‘(1) is a non-profit organization, a State, or a municipal corporation or political subdivision of a State; ‘‘(2) agrees not to use, or allow others to use, the vessel for commercial transportation purposes; ‘‘(3) agrees to make the vessel available to the Government whenever the Secretary indicates that it is needed by the Government; ‘‘(4) agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims arising from use of the vessel by the Government; ‘‘(5) has a conveyance plan and a business plan that describes the intended use of the vessel, each of which has been submitted to and approved by the Secretary; ‘‘(6) has provided proof, as determined by the Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of the vessel; and ‘‘(7) agrees that when the recipient no longer requires the vessel for use as described in the business plan required under paragraph (5)— ‘‘(A) the recipient will, at the discretion of the Secretary, reconvey the vessel to the Government in good condition except for ordinary wear and tear; or ‘‘(B) if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the State in which the recipient is incorporated, then— ‘‘(i) the recipient shall distribute the vessel, as an asset of the recipient, to a person that has been determined exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)), or to the Federal Government or a State or local government for a public purpose; and ‘‘(ii) the vessel shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes as the court shall determine, or to such

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