46 CFR § 298.16 - Substitution of participants.

---
identifier: "/us/cfr/t46/s298.16"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 298.16 - Substitution of participants."
title_number: 46
title_name: "Shipping"
section_number: "298.16"
section_name: "Substitution of participants."
chapter_name: "MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "D"
subchapter_name: "VESSEL FINANCING ASSISTANCE"
part_number: "298"
part_name: "OBLIGATION GUARANTEES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "46 U.S.C. chapter 537; 49 CFR 1.93."
regulatory_source: "65 FR 45152, July 20, 2000, unless otherwise noted."
cfr_part: "298"
---


# 298.16 Substitution of participants.

(a) You may request our permission to substitute participants to a Mortgage and/or Security Agreement in a financing that is receiving assistance authorized by Title XI of the Act.

(b) A non-refundable fee of $3,000 is due, payable at the time of the request. The fee defrays all costs of processing and reviewing a joint application by a mortgagor and/or Obligor and a proposed transferee of a Vessel or Shipyard Project, which is security for Title XI debt, if the proposed transferee is to assume the Mortgage and/or the Security Agreement.