§ 7312. Service craft stricken from Naval Vessel Register; obsolete boats: use of proceeds from exchange or sale
(a)
Exchange or Sale of Similar Items.—
When the Secretary of the Navy sells an obsolete service craft or an obsolete boat, or exchanges such a craft or boat in a transaction for which a similar craft or boat is acquired, the Secretary may retain the proceeds of the sale or the exchange allowance from the exchange, as the case may be, and apply the proceeds of sale or the exchange allowance for any of the following purposes:
(1)
For payment, in whole or in part, for a similar service craft or boat acquired as a replacement, as authorized by section
503 of title
40.
(b)
Special Account.—
Amounts retained under subsection (a) that are not applied as provided in paragraph (1) or (2) of that subsection shall be deposited into a special account. Amounts in the account shall be available under subsection (c) without regard to fiscal year limitation. Amounts in the account that the Secretary of the Navy determines are not needed for the purpose stated in subsection (c) shall be transferred at least annually to the General Fund of the Treasury.
(c)
Costs of Preparation of Obsolete Service Craft and Boats for Future Sale or Exchange.—
The Secretary may use amounts in the account under subsection (b) for payment, in whole or in part, for the full costs of preparation of obsolete service craft and obsolete boats for future sale or exchange.
(d)
Costs of Preparation for Sale or Exchange.—
In this section, the term “full costs of preparation” means the full costs (direct and indirect) incurred by the Navy in preparing an obsolete service craft or an obsolete boat for exchange or sale, including the cost of the following:
(e)
Obsolete Service Craft.—
For purposes of this section, an obsolete service craft is a service craft that has been stricken from the Naval Vessel Register.
(f)
Inapplicability of Advertising Requirement.—
Section 3709 [1] of the Revised Statutes (41 U.S.C. 5) does not apply to sales of service craft and boats described in subsection (a).
(g)
Regulations.—
The Secretary of the Navy shall prescribe regulations for the purposes of this section.
[1] See References in Text note below.