[Code of Federal Regulations] [Title 46, Volume 9] [Revised as of October 1, 2006] [CITE: 46CFR540.1] [Page 239-240] TITLE 46--SHIPPING CHAPTER IV--FEDERAL MARITIME COMMISSION PART 540_PASSENGER VESSEL FINANCIAL RESPONSIBILITY--Table of Contents Subpart A_Proof of Financial Responsibility, Bonding and Certification of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation Sec. 540.1 Scope. Subpart A_Proof of Financial Responsibility, Bonding and Certification of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation Sec. 540.1 Scope. 540.2 Definitions. 540.3 Proof of financial responsibility, when required. 540.4 Procedure for establishing financial responsibility. 540.5 Insurance, guaranties, and escrow accounts. 540.6 Surety bonds. 540.7 Evidence of financial responsibility. 540.8 Denial, revocation, suspension, or modification. 540.9 Miscellaneous. Form FMC-131 to Subpart A Form FMC-132A to Subpart A Form FMC-133A to Subpart A Appendix A to Subpart A--Example of Escrow Agreement for Use Under 46 CFR 540.5(b) Subpart B_Proof of Financial Responsibility, Bonding and Certification of Financial Responsibility To Meet Liability Incurred for Death or Injury to Passengers or Other Persons on Voyages 540.20 Scope. 540.21 Definitions. 540.22 Proof of financial responsibility, when required. 540.23 Procedure for establishing financial responsibility. 540.24 Insurance, surety bonds, self-insurance, guaranties, and escrow accounts. 540.25 Evidence of financial responsibility. 540.26 Denial, revocation, suspension, or modification. 540.27 Miscellaneous. [[Page 240]] Form FMC-132B to Subpart B Form FMC-133B to Subpart B Subpart C_General 540.91 OMB control numbers assigned pursuant to the Paperwork Reduction Act. Authority: 5 U.S.C. 552, 553; 31 U.S.C. 9701; secs. 2 and 3, Pub. L. 89-777, 80 Stat. 1356-1358, 46 U.S.C. app. 817e, 817d; 46 U.S.C. 1716. Source: 49 FR 36313, Sept. 14, 1984, unless otherwise noted. (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).