46 U.S. Code § 40902 - Financial responsibility
(a) In General.— A person may not act as an ocean transportation intermediary unless the person furnishes a bond, proof of insurance, or other surety—
(1) in a form and amount determined by the Federal Maritime Commission to insure financial responsibility; and
(b) Scope of Financial Responsibility.— A bond, insurance, or other surety obtained under this section—
(1) shall be available to pay any penalty assessed under section 41109 of this title or any order for reparation issued under section 41305 of this title;
(2) may be available to pay any claim against an ocean transportation intermediary arising from its transportation-related activities—
(A) with the consent of the insured ocean transportation intermediary and subject to review by the surety company; or
(3) shall be available to pay any judgment for damages against an ocean transportation intermediary arising from its transportation-related activities, if the claimant has first attempted to resolve the claim under paragraph (2) and the claim has not been resolved within a reasonable period of time.
(c) Regulations on Court Judgments.— The Commission shall prescribe regulations for the purpose of protecting the interests of claimants, ocean transportation intermediaries, and surety companies with respect to the process of pursuing claims against ocean transportation intermediary bonds, insurance, or sureties through court judgments. The regulations shall provide that a judgment for monetary damages may not be enforced except to the extent that the damages claimed arise from the transportation-related activities of the insured ocean transportation intermediary, as defined by the Commission.
Source(Pub. L. 109–304, § 7,Oct. 6, 2006, 120 Stat. 1538.)
|Revised Section||Source (U.S. Code)||Source (Statutes at Large)|
|Pub. L. 98–237, § 19(b), Mar. 20, 1984; added Pub. L. 105–258, title I, § 116(4), Oct. 14, 1998, 112 Stat. 1913.|
In subsection (b), in paragraphs (2) and (3), the words “described in section 1702(17) of this Appendix” are omitted as unnecessary.