(b) To satisfy the statutory requirements, an Affidavit of Citizenship of a corporate applicant, by one of its officers duly authorized to execute such affidavit, should be submitted. This affidavit should contain facts from which the corporation's citizenship can be determined. The mere allegations that the corporation is a citizen of the United States, and that the required percentage is owned by citizens of the United States, without the submission of appropriate documentary evidence to substantiate and corroborate such allegations, are not sufficient.

§ 355.2 Requirements regarding evidence of United States citizenship. The information for inclusion in the affidavits and the documentary evidence in substantiation thereof are as follows:

(a) Proof of domestic incorporation. The affidavit, among other things, should contain the following:

(1) The exact name of the company; (2) Its principal place of business; and

(3) The laws under which the corporation was organized and the date of organization.

A copy of the articles or certificate of incorporation and all amendments thereto, certified by the Secretary of the State where corporation was organized is required as proof of place of incorporation; the By-Laws of the corporation, certified by the Secretary of such corporation is required to be filed along with the aforementioned articles or certificate and the affidavit of citizenship; later amendments to the articles or certificates of incorporation and ByLaws should be filed promptly.

(b) Proof that the president or other chief executive officer, vice presidents or other individuals who are authorized to act in the absence or disability of the president or other chief executive officer, the chairman of the board of directors, and the required number of directors are citizens of the United States. Evidence should be submitted in proof of the United States citizenship of persons in the capacities enumerated. In the case of corporations receiving operatingdifferential subsidy, under Title VI of the Act, all directors thereof must be United States citizens. In case of other corporate applicants, it must be shown that no more than a minority of the number of directors necessary to constitute a quorum are non-citizens.

(See

Public Law 86-327, Sept. 21, 1959.) Such evidence should include name, address, date and place of birth, nationality, and if citizens of the United States, whether by birth, naturalization, or other basis.

(1) Birth in the United States. Evidence of birth in the United States, in the order of its conclusiveness, may be given as follows:

(i) Authenticated birth certificate; or (ii) Authenticated baptismal certificate, showing baptism shortly after birth; or

(iii) Two affidavits of persons having personal knowledge of the time and place of birth, stating clearly facts from which affiants acquired such knowledge. Affiants may include father, mother, attending physician or midwife, uncle, aunt, older brother, older sister, or close family friend; or

(iv) Photostatic copy of entry in "Family Bible" with certification that it is taken from the "Family Bible"; or

(v) Affidavit of person whose citizenship is involved, stating the date and place of his birth, the source of his knowledge, the nonavailability of proof mentioned in subdivisions (i) to (iv) of this subparagraph, together with reference as to source where proof of his birth may be of record; i.e., Army or Navy records, Civil Service employment records, census records, etc.

(2) Naturalization. Evidence of naturalization is obtainable from the Department of Justice, Immigration and Naturalization Service. This evidence is available to the Administration, provided the person whose citizenship is involved submits the date, place and the name of the court before which he was naturalized. Such person should also execute an affidavit showing dates and places of residence since naturalization.

(3) Citizenship by naturalization while a minor. Any person alleging United States citizenship by virtue of the naturalization of a parent during his or her minority should obtain a certificate of citizenship from the Immigration and Naturalization Service, Department of Justice, which is available at any of its offices, by application therefor on Form N-600 (8 CFR Part 341). This certificate may be presented to the Office of General Counsel, Maritime Administration, Washington, D.C., for sighting and record, or in lieu thereof, the number and date of the certificate together with the place of issue thereof by the Immigration and Naturalization Service

should be submitted, which data shall be subject to verification by said Service through inquiry by the Maritime Administration.

(4) Birth abroad of American parents. Any person alleging United States citizenship by virtue of being born outside of the United States of American parents, should obtain a certificate of citizenship from the Immigration and Naturalization Service, Department of Justice, which is available at any of its offices, by application therefor on Form N-600 (8 CFR Part 341). This certificate may be presented to the Office of General Counsel, Maritime Administration, Washington, D.C., for sighting and record, or in lieu thereof, the number and date of the certificate together with the place of issue thereof by the Immigration and Naturalization Service should be submitted, which data shall be subject to verification by said Service through inquiry by the Maritime Administration.

(5) Married women. If United States citizenship on behalf of a married woman is alleged by virtue of marriage to an American citizen prior to September 22, 1922, there should be submitted:

(i) An authenticated copy of the marriage certificate, and

(ii) Proof of the United States citizenship of the husband. An affidavit should be submitted setting forth what changes, if any, have occurred in the marital status since marriage.

In all other cases, the United States citizenship of a married woman must be established as hereinbefore indicated.

(6) In the event that satisfactory documentary evidence to establish the United States citizenship of individuals named has been filed with the Department of State in connection with the issuance of an American passport, a reference thereto will be sufficient. The individual's full name, date and place of birth, and the date, place of issuance, and the number of the passport should be given.

(c) Proof that required interest in corporation is owned by citizens of the United States. The affidavit of citizenship should include a statement of the total number of issued and outstanding shares of all classes of stock, together with a showing as to the voting rights of each class. The required ownership percentage may be shown by one of two methods; namely:

(1) Individual stockholders. In the case of a corporation relying on individual stockholders, including natural persons, associations, partnerships, and corporations, the citizenship of natural persons involved should be established in the same manner and as fully as that of the aforementioned officers and directors; the citizenship of associations, partnerships, and corporations involved should be established in the same manner and as fully as that of an applicant association, partnership or corporation.

(2) Fair inference from residence of stockholders. In the case of a corporation having to rely on more than thirty (30) stockholders, a fair inference can be made that the required ownership and voting interest is vested in citizens of the United States, if it is established by the stock ledger of the corporation or the records of the registrar or transfer agent that 65 percent or more, in the case of a corporation operating any vessel in the foreign trade (or in the case of a corporation operating any vessel in the coastwise trade, on the Great Lakes, or on bays, sounds, rivers, harbors or inland lakes of the United States, 95 percent or more), of the stock is owned by persons whose addresses are within the United States. The statement should include the number of shareholders who have given addresses in the United States, the number of shares of stock they own and the exact percentage that these shares are of the total issued and outstanding shares of stock. The same statement should be made for each class of stock, showing the voting rights thereof. The submission of these data to the Administration furnishes a basis from which a fair inference can be made (in the discretion of the Maritime Administrator) that since a very large proportion of the total stock and voting stock is in the hands of stockholders residing within the United States, the required percentage of ownership is in citizens of the United States. (See Collier Advertising Service, Inc. v. Hudson River Day Line, 14 Fed. Supp. 335.) If the fair inference rule is applied, the name of any stockholder owning five per centum (5 percent) or more of the total number of shares of stock of each class, if more than one, should be given and proof of United States citizenship submitted therefor. The statement should also set forth that of the shares of stock relied upon to establish that the required.

ownership and voting interest is vested in citizens of the United States, none is:

(i) The subject of any trust or fiduciary obligation in favor of any person not a citizen of the United States; or

(ii) Subject to a contract or understanding or other arrangement whereby the voting powers may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or

(iii) By any other means whatsoever, subject to control by any person who is not a citizen of the United States.

(3) If it is not possible to comply with the foregoing the facts should be fully disclosed and special instructions obtained.

(4) Annual filing of data to evidence continuing United States citizenship is required. Mortgagors under mortgages insured pursuant to Title XI, Merchant Marine Act, 1936, as amended, are required to file such data in accordance with the terms of the mortgage.

(5) Lenders and/or mortgagees as participants in Title XI (1936 Act) transactions are required, under the mortgage documents executed, to file evidence of continuing United States citizenship.

(6) Nominee stockholders (partnership or corporate) and said lenders and/or mortgagees may obtain form of proof to be submitted from the Office of General Counsel, Maritime Administration.

[G.O. 89, 25 F.R. 5293, June 14, 1960, as amended by G.O. 89, Amdt. 1, 30 F.R. 5901, Apr. 28, 1965]

§ 355.3 Form of affidavit.

The following form of affidavit is prescribed for execution in establishing the United States citizenship of corporations applying for benefits under the Merchant Marine Act, 1936, as amended:

AFFIDAVIT OF UNITED STATES CITIZENSHIP
State of
County of

I,

say:

.:

--, being duly sworn, depose and

That I am the (Title of office or offices held) of (Name of corporation), a corporation organized and existing under and by virtue of the laws of the State (or Commonwealth) of and that I

am authorized to execute this affidavit concerning the United States citizenship of said (Name of corporation), an applicant for (Type of benefit applied for), pursuant to the provisions of section or sections (Desig

nate by number) of the Merchant Marine Act, 1936, as amended;

That the information hereinafter set forth in this affidavit is given for the purpose of establishing the United States citizenship of said (Name of corporation) and is made and submitted as a part of the application for (Type of benefit applied for) as aforesaid;

That (Name of corporation) is a corporation organized and existing under and by virtue of the laws of the State (or Commonwealth) of with its principal

executive office and place of business located at (Number, Street, City, and State), and that, as proof of its incorporation under the laws of the State (or Commonwealth) of there are attached hereto a certified copy of the Certificate or Articles of Incorporation, together with certified copy of corporate By-Laws, and amendments, if any;

That the following persons are the President or other Chief Executive Officer, Vice Presidents or other individuals who are authorized to act in the absence or disability of the President or other Chief Executive Officer, Chairman of the Board of Directors and Directors of said (Name of corporation), the applicant:

Name; Office; Place and Date of Birth John Doe, President-Director, New York, N.Y., 1-18-1897.

Richard Roe, Secretary-Treasurer-Director, London, England, 3-12-1901.

(The foregoing list should include the officers, whether or not they are also directors, and all directors, whether or not they are also officers. In the case of corporations, other than those under Title VI of the Act, any alien directors should be named and followed by a statement that under the corporate By-laws------directors are necessary to constitute a quorum and that no more than a minority of the number of directors necessary to constitute a quorum are noncitizens.)

That John Doe is a citizen of the United States by virtue of his birth in the United States as shown in certified copy of birth certificate herewith (if a birth certificate is not available, give other acceptable proof as set forth in § 355.1(b); if passport data are given state the individual's full name and the number, date and place of issue of the passport; passports may be presented to the Office of General Counsel for sighting);

That Richard Roe is a citizen of the United States by virtue of his naturalization; give the Certificate of Naturalization number, date of issue and name and location of the court issuing said Certificate; naturalization certificates may be presented to the Office of General Counsel for sighting; the naturalized citizen should furnish an affidavit setting forth the places and dates of his residence since becoming a naturalized citizen;

(If different classes of stock exist, give the same data for each class issued and outstanding, showing the voting rights for each class.)

Explanatory note. To prove that the required interest (controlling interest for foreign trade, or, in the case of a corporation operating any vessel in the coastwise trade, on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States, 75% thereof) in applicant corporation is owned by citizens of the United States, applicant may select one of two methods. It may (a) establish the United States citizenship of individual owners of such required interest; or (b) if it must rely on more than 30 shareholders, show that, for majority interest, 65% or more (or for 75% interest, 95% or more) of the stock is owned by persons whose addresses are within the United States. Such a showing furnishes a basis from which a fair inference can be made (in the discretion of the Maritime Administrator) that the required ownership is in citizens of the United States.

If the applicant is relying on the citizenship of individual owners (natural persons, associations, partnerships, and corporations) of the required interest, the following statement should be included:

That, in order to establish that the controlling interest (or 75% or more) of the stock in said corporation is owned by citizens of the United States, the applicant selects and relies upon the following owners:

(Here list the stockholders upon which applicant intends to rely, together with the number and class of shares of stock owned by each. A statement should be made at this point setting forth the facts upon which the citizenship of each owner is based; if an individual, attach to the affidavit the appropriate documentary evidence in the same manner as for the above-mentioned officers and directors; if a corporation, the same evidence is required to be furnished as that required for the applicant.)

If the applicant is relying on fair inference from residence within the United States of owners of 65% (or 95%) or more of its stock, the following should be included: That the registered addresses of holders of

shares of stock are shown as being within the United States, said shares of (class) being % of the total of shares of issued and outstanding stock (the same statement should be made as to each class of stock, if there is more than one class). Give name of and submit proof of United States citizenship for any holder

of 5% or more of the total number of shares issued and outstanding of each class, if more than one; proof of citizenship beyond the second tier of ownership (in the discretion of the Maritime Administrator) is not required unless such ownership is in a parent or major stockholder.

The following statement should conclude each affidavit of citizenship:

1

That the controlling interest (or 75% of the interest) 1 in said corporation, as established by the data herein before set forth, is owned by citizens of the United States; that the title to a majority (or 75%) of the stock in said corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; that such proportion of the voting power of said corporation is vested in citizens of the United States; that through no contract or understanding, is it so arranged that the majority (or more than 25%) 1 of the voting power of said corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; and that, by no means whatsoever, is control of said corporation (or of any interest in said corporation in excess of 25%) 1 conferred upon or permitted to be exercised by any person who is not a citizen of the United States; and

(a) Transfers of marine equipment owned by the Maritime Administration will be made, upon request, only in cases of emergency under the following conditions:

(1) There must be a need which cannot be filled within a reasonable time by a manufacturer or other source;

(2) The transferee shall agree to stand all costs incurred in connection with the transfer;

(3) The transferee shall agree to take possession and custody of the equipment at a time and place designated by the Maritime Administration, and there shall be no liability on the part of the Maritime Administration for any failure of the equipment thereafter; and

(4) The equipment transferred shall be replaced by the transferee, at his expense, at the earliest practicable date and at a point designated by the Maritime Administration, with new equipment of the same type and design or with equipment determined by the Maritime Administration to be suitable for the same use as the equipment transferred, in a condition satisfactory to the Maritime Administration and in compliance with American Bureau of Shipping and U.S. Coast Guard standards.

(b) Transfers which meet the above requirements may be made (1) to operators of U.S.-flag merchant ships and shipyards for the construction or repair of U.S.-flag merchant ships, and (2) to foreign-flag merchant ships and U.S. shipyards for the construction or repair of foreign-flag merchant ships, when it is determined by the Maritime Adminis

tration, in consultation with other Government agencies, as appropriate, that the transfer would be beneficial to the American merchant marine, the defense effort, or otherwise in the national interest.

(c) The transferee shall furnish a deposit to the Maritime Administration in the amount of the current acquisition value (new) of the equipment, as determined by the Maritime Administration, plus 10 percent of such amount to cover expenses which may be incurred by the Maritime Administration in connection with the transaction, including possible damages to Maritime Administration properties, and, where applicable, an additional amount equal to the estimated cost of closing any openings or reassembling any machinery made necessary by the transfer. This deposit, less the amount of any expenses or damages incurred by the Maritime Administration in connection with the transfer, will be returned to the transferee upon satisfactory replacement of the equipment.

(d) The transferee shall pay to the Maritime Administration a service charge in the amount of $200 to cover administrative and operating expenses incurred in processing the transfer. This amount is to be deposited to the credit of the Government, and will not be returned to the transferee.

§ 360.4 Authorized transfer officials.

(a) No transfer of marine equipment shall be made to a foreign-flag ship or to a shipyard for the construction or repair of a foreign-flag ship without the express approval of the Maritime Administrator.

(b) The Maritime Administrator has delegated to the Chief, Office of Property and Supply, the authority to make transfers of marine equipment for the operation, construction and repair of U.S.flag ships, in accordance with the policy requirements of § 360.3. The Chief, Office of Property and Supply, has redelegated the above authority to the Chief, Division of Purchase and Sales, Office of Property and Supply.

(c) The Maritime Administrator has delegated the authority to the Coast Directors in the field, to transfer marine equipment under their cognizance for the operation, construction or repair of U.S.-flag ships, in accordance with policy requirements of § 360.3, when requests therefor originate in their District or are referred to them for action.