Pub. L. 82-476, pt. IV, sec. 409

Sec. 409. The Secretary of the Navy shall prescribe a suitable flag to be known as the Naval Reserve flag. This flag may be flown by seagoing merchant vessels— (a) documented under the. laws of the United States, which have been designated by the Secretary of the Navy under such regulations as he may prescribe as suitable for service as naval auxiliaries in time of war, and (b) the master or commanding officer and not less than 50 per centum of the other licensed officers of which are members of the Navy or Naval Reserve.