The above indicated vehicle could not be serviced today. Preference for service will be given the next business day at a.m./p.m. TIME STAMP FEDERAL MARITIME COMMISSION 46 CFR PART 540 SECURITY FOR THE PROTECTION OF THE PUBLIC SUBPART A-PROOF OF FINANCIAL RESPONSIBILITY, BONDING Definitions. Proof of financial responsibility, when required. Insurance, guaranties, escrow accounts, and self-insurance. 540.2 540.3 540.4 540.5 540.6 Surety bonds. SUBPART B-PROOF OF FINANCIAL RESPONSIBILITY, BONDING 540.20 Scope. Definitions. Proof of financial responsibility, when required. Procedure for establishing financial responsibility. Insurance, surety bonds, self-insurance, guaranties, and escrow accounts. 540.21 540.22 540.23 540.24 540.25 540.26 Denial, revocation, suspension, or modification. 540.27 Form Form Evidence of financial responsibility. Miscellaneous. FMC-132B. FMC-133B. SUBPART C-ASSESSMENT, REMISSION, AND MITIGATION OF 540.30 Scope. CIVIL PENALTIES 2 590.91 Payment of penalties. OMB control numbers assigned pursuant to the Paperwork Reduction Act. Appendix A-Example of Settlement Agreement to be used under 46 CFR §§ 540.30-540.36. Appendix B-Example of promissory note to be used under 46 CFR § 540.36. AUTHORITY: 5 U.S.C. 552, 553; Secs. 2 and 3, Pub. L. 89-777, 80 Stat. 1356-1358 (46 U.S.C. app. 817e, 817d); Sec. 43 of the Shipping Act, 1916 (46 U.S.C. app. 841a); Sec. 17 of the Shipping Act of 1984 (46 U.S.C. app. 1716). SUBPART A-PROOF OF FINANCIAL RESPONSIBILITY, BONDING AND CERTIFICATION OF FINANCIAL RESPONSIBILITY FOR INDEMNIFICATION OF PASSENGERS FOR NONPERFORMACE OF TRANSPORTATION § 540.1 Scope. (a) The regulations contained in this subpart set forth the procedures whereby persons in the United States who arrange, offer, advertise or provide passage on a vessel having berth or stateroom accommodations for 50 or more passengers and embarking passengers at U.S. ports shall establish their financial responsibility or, in lieu thereof, file a bond or other security for obligations under the terms of ticket contracts to indemnify passengers for nonperformance of transportation to which they would be entitled. Included also are the qualifications required by the Commission for issuance of a Certificate (Performance) and the basis for the denial, revocation, modification, or suspension of such Certificates. (b) Failure to comply with this part may result in denial of an application for a certificate. Vessels operating without the proper certificate may be denied clearance and their owners may also be subject to a civil penalty of not more than $5,000 in addition to a civil penalty of $200 for each passage sold, such penalties to be assessed by the Federal Maritime Commission (46 U.S.C. app. 91, 817d and 817e). § 540.2 Definitions. As used in this subpart, the following terms shall have the following meanings: (a) "Person" includes individuals, corporations, partnerships, associations, and other legal entities existing under or authorized by the laws of the United States or any State thereof or the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands or any territory or possession of the United States, or the laws of any foreign country. (b) "Vessel" means any commercial vessel having berth or stateroom accommodations for 50 or more passengers and embarking passengers at U.S. ports. (c) "Commission" means the Federal Maritime Commission. (d) "United States" includes the Commonwealth of Puerto Rico, the Virgin Islands or any territory or possession of the United States. (e) "Berth or stateroom accommodations" or "passenger accommodations' includes all temporary and all permanent passenger sleeping facilities. (f) "Certificate (Performance)" means a Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation issued pursuant to this subpart. (g) "Passenger" means any person who is to embark on a vessel at any U.S. port and who has paid any amount for a ticket contract entitling him to water transportation. (h) "Passenger revenue" means those monies wherever paid by passengers who are to embark at any U.S. port for water transportation and all other accommodations, services and facilities relating thereto. (i) "Unearned passenger revenue" means that passenger revenue received for water transportation and all other accommodations, services, and facilities relating thereto not yet performed. (j) "Insurer" means any insurance company, underwriter, corporation, or association of underwriters, ship owners' protection and indemnity association, or other insurer acceptable to the Commission. (k) "Evidence of insurance" means a policy, certificate of insurance, cover note, or other evidence of coverage acceptable to the Commission. § 540.3 Proof of financial responsibility, when required. No person in the United States may arrange, offer, advertise or provide passage on a vessel unless a Certificate (Performance) has been issued to or covers such person. $540.4 Procedure for establishing financial responsibility. (a) In order to comply with section 3 of Pub. L. 89-777 (80 Stat. 1357, 1358) enacted November 6, 1966, there must be filed an application on Form FMC-131 for a Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation. Copies of Form FMC-131 may be obtained from the Secretary, Federal Maritime Commission, Washington, D.C. 20573, or at the Commission's offices at New York, N.Y.; New Orleans, La.; San Francisco, Calif; Miami, Fla.; Los Angeles, Calif.; Hato Rey, P.R.; and Chicago, Ill. (b) An application for a Certificate (Performance) shall be filed in duplicate with the Secretary, Federal Maritime Commission, by the vessel owner |