Collapse to view only § 50502. Applicability to receivers, trustees, successors, and assigns
- § 50501. Entities deemed citizens of the United States
- § 50502. Applicability to receivers, trustees, successors, and assigns
- § 50503. Oceanographic research vessels
- § 50504. Sailing school vessels
§ 50501. Entities deemed citizens of the United States
(a)In General.—In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States.
(b)Additional Requirements for Corporations.—In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)—
(1) it is incorporated under the laws of the United States or a State;
(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and
(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum.
(c)Determination of Controlling Corporate Interest.—The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if—
(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) the majority of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
(d)Determination of 75 Percent Corporate Interest.—At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if—
(1) title to at least 75 percent of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) at least 75 percent of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which more than 25 percent of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of more than 25 percent of any interest in the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1566.)
§ 50502. Applicability to receivers, trustees, successors, and assigns
This subtitle applies to receivers, trustees, successors, and assigns of any person to whom this subtitle applies.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1567.)
§ 50503. Oceanographic research vessels
An oceanographic research vessel (as defined in section 2101 of this title) is deemed not to be engaged in trade or commerce.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1567.)
§ 50504. Sailing school vessels
(a)Definitions.—In this section, the terms “sailing school instructor”, “sailing school student”, and “sailing school vessel” have the meaning given those terms in section 2101 of this title.
(b)Not Seamen.—A sailing school student or sailing school instructor is deemed not to be a seaman under—
(1) parts B, F, and G of subtitle II of this title; or
(2) the maritime law doctrines of maintenance and cure or warranty of seaworthiness.
(c)Not Merchant Vessel or Engaged in Trade or Commerce.—A sailing school vessel is deemed not to be—
(1) a merchant vessel under section 11101(a)–(c) of this title; or
(2) a vessel engaged in trade or commerce.
(d)Evidence of Financial Responsibility.—The owner or charterer of a sailing school vessel shall maintain evidence of financial responsibility to meet liability for death or injury to sailing school students and sailing school instructors on a voyage on the vessel. The amount of financial responsibility shall be at least $50,000 for each student and instructor. Financial responsibility under this subsection may be evidenced by insurance or other adequate financial resources.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1568.)