A bill to protect the interest of the United States as a secured creditor under the Federal Ship Financing Program under title XI of the Merchant Marine Act, 1936, and for other purposes.

Amends Federal bankruptcy provisions to provide that a court shall not have power to enjoin the right of a secured party who has an interest in, or is a lessor or conditional vendor of, a vessel as defined by specified provisions of the Merchant Marine Act, 1936 to take possession of, and foreclose on, such vessel under the provisions of a preferred ship mortgage, purchase-money equipment security agreement, lease, or conditional sales contract. Requires full payment in cash to the United States of all sums paid pursuant to a governmental guarantee in order to cure a default under a security or a mortgage.