46 CFR § 289.3 - Provision in subsidy agreements and mortgages.

---
identifier: "/us/cfr/t46/s289.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 289.3 - Provision in subsidy agreements and mortgages."
title_number: 46
title_name: "Shipping"
section_number: "289.3"
section_name: "Provision in subsidy agreements and mortgages."
chapter_name: "MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "C"
subchapter_name: "REGULATIONS AFFECTING SUBSIDIZED VESSELS AND OPERATORS"
part_number: "289"
part_name: "INSURANCE OF CONSTRUCTION-DIFFERENTIAL SUBSIDY VESSELS, OPERATING-DIFFERENTIAL SUBSIDY VESSELS AND OF VESSELS SOLD OR ADJUSTED UNDER THE MERCHANT SHIP SALES ACT 1946"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114. Interpret or apply sec. 12, 60 Stat. 49, as amended; 50 U.S.C. App. 1745."
regulatory_source: "General Order 67 Rev., 18 FR 230, Jan. 10, 1953, unless otherwise noted."
cfr_part: "289"
---


# 289.3 Provision in subsidy agreements and mortgages.

(a) All construction-differential subsidy agreements and mortgages relative to vessels covered in § 289.2(a) shall provide, wherever possible, that the Maritime Administrator may, in his discretion, require the owner to insure, with commercial underwriters, the interest of the United States.

(b) All future construction-differential subsidy agreements and future operating subsidy agreements shall require that owners insure vessels covered in § 289.2 (a) and (d) in amounts acceptable to the Maritime Administration.