# Amendment of MARAD's Regulations Establishing and Administering Deposit Funds Authorized by Section 1109 of the Merchant Marine Act, 1936, as Amended
> **Maritime Administration** · Final rule. · Published 2002-09-30 · Effective 2002-10-30 · 67 FR 61280
## Document
- **Document number:** 02-24695
- **Category:** maritime
- **Sub-agency:** Maritime Administration
- **Federal Register citation:** 67 FR 61280
- **CFR reference:** 46 CFR 298
- **Publication date:** 2002-09-30
- **Effective date:** 2002-10-30
- **DOT docket:** Docket No. MARAD-2002-12425
## Abstract

Recent legislation modified the Merchant Marine Act, 1936, as amended, by adding a new Section 1109, which authorizes the Secretary of Transportation to hold funds from Title XI obligors as collateral by depositing them with the United States Treasury and investing them in Treasury obligations. As a consequence, these funds need no longer be deposited in private banks. This final rule changes existing procedures to simplify, reduce costs of, and expedite Title XI closings.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2002/09/30/02-24695/amendment-of-marads-regulations-establishing-and-administering-deposit-funds-authorized-by-section)
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