§ 4703. Payment of compensation; insurance

Footnotes

1. 1 See Transfer of Functions note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1943

   Pub. L. 78–26 § 3 · 57 Stat. 45

   Enacted · 50 U.S.C. § 4703

   Mar. 24, 1943, ch. 26, § 3, 57 Stat. 48

   Source evidence

   Code source credit
   Mar. 24, 1943, ch. 26, § 3, 57 Stat. 48

   Enacted provision · exact public law section
   Sec. 3. (a) The second proviso of section 1 of the Act of June 6, 1941 (Public Law 101, Seventy-seventh Congress), as amended, is hereby amended to read as follows: “ Provided further , That such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession; the holder of any such claim may commence prior to June 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisition or taking of title or possession, a suit in admiralty according to the principles of libels in rem against the fund, which shall proceed and be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties, and any decree in said suit shall be paid out of the first and all subsequent deposits of compensation; and such suit shall be commenced in the manner provided by section 2 of the Suits in Admiralty Act and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the United States Maritime Commission and due notice shall under order of the court be given to all interested persons, and any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction.” (b) The Administrator, War Shipping Administration, may determine at any time prior to the payment in full or deposit in full with the Treasurer of the United States, or the payment or deposit of 75 per centum, of just compensation therefor that the ownership of any vessel (the title to which has been requisitioned pursuant to section 49 Stat. 2015; 55 Stat. 242. 46 U. S. C. § 1242; Supp. II, note prec. § 1101. Post. pp. 49, 51. Supra. 902 of the Merchant Marine Act, 1936, as amended, or the Act of June 6, 1941 (Public Law 101, Seventy-seventh Congress)), is not required by the United States, and after such determination has been made and notice thereof has been published in the Federal Register, the use rather than the title to such vessel shall be deemed to have been requisitioned for all purposes as of the date of the original taking: Provided, however, That no such determination shall be made with respect to any vessel after the expiration of a period of two months after the date of delivery of such vessel pursuant to title requisition except with the consent of the owner. Except as provided by Executive Order Numbered 9001–A, December 27, 1941, such 1 CFR, 1941 Supp., p. 332. a determination may be made by the Administrator, War Shipping Administration, with respect to any vessel title to which has been requisitioned pursuant to the Act of June 6, 1941 (Public Law 101, 55 Stat. 242. 46 U. S. C., Supp. II, note prec. § 1101. Ante, p. 48; post, p. 51. Seventy-seventh Congress), and which vessel thereafter has been lost or destroyed or converted to naval or military use by the United States, upon owner’s consent and certification by the Secretary of State that understanding had been reached between the United States and the diplomatic representatives of the country of which the owner of such vessel was a national, that such title requisition instead of requisition for use was necessitated by the circumstances existing at the date of requisitioning, but that such vessel should be returned after the termination of the national emergency declared by the President on 55 Stat. 1647. 50 U. S. C., Supp. II, app., note prec. § 1. May 27, 1941. (c) In the event that a vessel the title or use and possession of which is requisitioned or taken pursuant to section 902 of the Merchant Marine Act, 1936, as amended, or the Act of June 6, 1941 (Public Requisitioned vessel in custody of court. 49 Stat. 2015; 55 Stat. 242. 46 U. S. C. § 1242; Supp. II. note prec. § 1101. Infra. Ante, p. 48; post, p. 51. Law 101, Seventy-seventh Congress), is in the custody of any court, State or Federal, it shall be the duty of all agents and officers of the court having possession, custody, or control of said vessel, forthwith upon the filing with the clerk of said court of a certified copy of the order of requisitioning or taking, and without further order of the court, to comply with said requisitioning or taking and to permit the representatives of the United States Maritime Commission or the War Shipping Administration, as the case may be, to take possession, custody, and control of said vessel. (d) Section 902 of the Merchant Marine Act, 1936, as amended, is 53 Stat. 1256. 46 U. S. C. § 1242 (d). hereby amended by adding at the end of subsection (d) thereof a paragraph to read as follows: “The existence of any valid claim by way of mortgage or maritime Valid claims against requisitioned vessels. claim or attachment lien upon such vessel shall not prevent the taking thereof pursuant to this section: Provided, however, That in the event Manner of payment. any such claim exists the United States Maritime Commission may in its discretion deposit such portion of the compensation hereunder, or advances on account thereof, as may equal but not exceed the amount of such claims in respect of the vessel, with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession; the holder of any such claim may commence prior to June 30, Suit in admiralty. 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisitioning or taking of title or possession, a suit in admiralty according to the principles of libels in rem against the fund, which shall proceed and be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties, and any decree in said suit shall be paid out of the first and all subsequent deposits of compensation; and such suit shall be commenced in 41 Stat. 525. 46 U. S. C. § 742. the manner provided by section 2 of the Suits in Admiralty Act and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the United States Maritime Commission and due notice shall under order of the court be given to all interested persons, and any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction.” (e) (1) The second sentence of section 223 of Subtitle—Insurance of Title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by inserting before Compensation for servicing insurance. the period at the end thereof a comma and the following: “but the Commission may allow fair and reasonable compensation to any company authorized to do an insurance business in any State of the United States for servicing insurance written by such company as an underwriting agent for the Commission, and such compensation may include an allowance for expenses reasonably incurred by such agent but such expenses shall not include any commission paid by such agent in excess of 5 per centum of the premiums in respect of such insurance”. (2) The last sentence of such section 223 is amended by striking out the clause in parentheses, and by inserting before the period at Commissions. the end of such sentence a comma and the following: “but in no case shall such allowance to the carrier provide for payment by the carrier of commissions in excess of 5 per centum of the premiums paid for that portion of the direct insurance so reinsured”. (f) Section 224 (a) of Subtitle—Insurance of Title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by striking out the words “section 222” Ante, p. 47; post, p. 51 and inserting in lieu thereof the words “sections 222 and 229” and by inserting after the word “subtitle” and before the comma following 41 Stat. 992. 46 U. S. C. § 869. such word the words “or in section 10 of the Merchant Marine Act, 1920, as amended”. (g) Section 225 of Subtitle—Insurance of Title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by adding at the end thereof the Interpleader in insurance suits against U. S. following: “All persons having or claiming to have an interest in such insurance, or who it is believed might assert such an interest, may be made parties to such suit, either initially or upon the motion of either party. In any case where the Commission acknowledges the indebtedness of the United States on account of such insurance, and there may be a dispute as to the person or persons entitled to receive payment, the United States may bring an action in the nature of a bill of interpleader against the persons having or claiming to have any interest in such insurance, or who it is believed might assert such an interest, in the District Court of the United States for the District of Columbia, or in the district court in and for the district in which any such person resides. In either of such actions any person claiming to have an interest in such insurance, or who it is believed might assert such an interest, if not an inhabitant of or found within the district within which either of such actions is brought, may be brought in by order of the court to be served personally or by publication or in such other reasonable manner as the court may direct, and if it be shown to the satisfaction of the court that persons unknown might assert a claim on account of such insurance, the court may direct service upon such persons unknown by publication in the Federal Register. Judgment in any such action shall discharge the United States from further liability to any parties to such action, and to all persons where service by publication upon persons unknown is directed by the court. The procedure herein provided shall apply to all actions now pending against the United States under the provisions of this subtitle, as amended.” (h) Section 226 (f) of Subtitle—Insurance of Title II of the Merchant 56 Stat. 216. 46 U. S. C., Supp. II, § 1128e (f). Marine Act. 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by adding at the end thereof a new paragraph to read as follows: “(3) The term ‘risks of war’ shall include those losses which, in “Risks of war.” accordance with commercial practice prevailing from time to time, are excluded from marine insurance coverage under ‘free of capture and seizure’ clauses or clauses analogous thereto.” (i) Subtitle—Insurance of Title II of the Merchant Marine Act, 54 Stat. 689. 46 U. S. C., Supp. II, §§ 1128–1128g. Ante, pp. 47, 50: supra. Insurance against certain legal liabilities. 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by adding at the end thereof a section to read as follows: “Sec. 229. In addition to the insurance functions authorized by the other sections of this subtitle, the War Shipping Administration may insure directly, or may reinsure in whole or in part any company authorized to do business in any State in the United States and which shall insure directly, any person who shall perform services or provide facilities for or with respect to any American or foreign flag vessel, public or private, or any naval vessel of a foreign government against legal liabilities (except liability to employees in respect of employer’s liability and workmen’s compensation) that may be incurred by such person in connection with the performance of such services or the providing of such facilities, whenever in the opinion of the Administrator, War Shipping Administration, such insurance or reinsurance is required in the prosecution of the war effort and cannot be obtained at reasonable rates or upon reasonable conditions from approved companies authorized to do an insurance business in any State of the United States.” (j) The clause in parentheses in the first sentence of section 3 (b) 55 Stat. 244. 46 U. S. C., Supp. II, note prec. § 1101. of the Act of June 6, 1941, as amended (Public Law 101, Seventy-seventh Congress), is amended to read as follows: “(including any interest or liability of the owner, charterer, or agent)”. (k) The second sentence of section 4 of such Act of June 6, 1941, 55 Stat. 244. 46 U. S. C., Supp. II, note prec. § 1101. is amended by inserting after the words “national defense” and before the semicolon a comma and the following: “and when so chartered or operated may be insured as provided in said section 3”.

1 of 1 references resolved to an enrolled provision