[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR440.5]

[Page 873-874]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
     CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
              ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 440_FINANCIAL RESPONSIBILITY--Table of Contents
 
Subpart A_Financial Responsibility for Licensed and Permitted Activities
 
Sec. 440.5  General.

    (a) No person may commence or conduct any launch or reentry activity 
that requires a license or permit unless that person has demonstrated 
compliance with the requirements of this part.
    (b) The FAA will prescribe the amount of financial responsibility a 
licensee or permittee must obtain and any adjustments of the amount in a 
license or permit order issued concurrent with or subsequent to the 
issuance of a license or a permit.
    (c) Demonstration of financial responsibility under this part shall 
not relieve a licensee of ultimate responsibility for liability, loss, 
or damage sustained by the United States resulting from a licensed 
activity, except to the extent that:
    (1) Liability, loss, or damage sustained by the United States 
results from willful misconduct of the United States or its agents;
    (2) Any covered claim of a third party for bodily injury or property 
damage arising out of any particular licensed activity exceeds the 
amount of financial responsibility required under Sec. 440.9(c) of this 
part and does not exceed $1,500,000,000 (as adjusted for inflation) 
above such amount, and are payable pursuant to 49 U.S.C. 70113 and Sec. 
440.19 of this part. A claim of an employee of any entity listed in 
paragraphs (1)(ii) through (1)(iii) in the Third party definition in 
Sec. 440.3 of this part for bodily injury or property damage is not a 
covered claim;
    (3) A covered claim for property loss or damage exceeds the amount 
of financial responsibility required under Sec. 440.9(e) of this part 
and does not result from willful misconduct of the licensee; or
    (4) The licensee has no liability for covered claims by third 
parties for bodily injury or property damage arising out of any 
particular launch or reentry that exceeds $1,500,000,000 (as adjusted 
for inflation) above the amount of financial responsibility required 
under Sec. 440.9(c).
    (d) Demonstration of financial responsibility under this part does 
not relieve a permittee of ultimate responsibility for liability, loss, 
or damage

[[Page 874]]

sustained by the United States resulting from a permitted activity, 
except to the extent that:
    (1) Liability, loss, or damage sustained by the United States 
results from willful misconduct of the United States or its agents; or
    (2) A covered claim for property loss or damage to the United States 
exceeds the amount of financial responsibility required under Sec. 
440.9(e) and does not result from willful misconduct of the permittee.
    (e) A licensee's or permittee's failure to comply with any 
requirement of this part may result in suspension or revocation of a 
license or permit, and subject the licensee or permittee to civil 
penalties as provided in part 405 of this chapter.