Sec. 308.522 Collateral deposit fund, letter of

transmittal, Form MA-802.

308.523 Application for revision of open cargo policy, Form MA-303. 308.524 Application for cancellation of open cargo policy, Form MA-304. 308.525 Application for decrease in amount of cash collateral fund, Form MA-305.

308.526 Certificate for repayment of decrease of collateral deposit fund, Form MA-306.

308.527 Application for return premium, Form MA-307.

S08.528 Surety bond A, Form MA-308. 308.529 Surety bond B, Form MA-309. 308.530 Letter requesting increase or decrease in amount of surety bond, Form MA-310.

308.531 Endorsement of surety bond increasing or decreasing amount of coverage, Form MA-311. 308.532 Release of surety bond, Form MA-312.

308.533 Closing report, Form MA-313. 308.534 Certificate to be attached to closing report, Form MA-313-A.

308.535 Certificate to be attached to final closing report, Form MA-313-B.

308.536 Declaration where failure to comply with Clause 21 was inadvertent, Form MA-814.

308.537 Effective date of endorsement. III-FACULTATIVE WAR RISK CARGO INSURANCE

Subpart A-General

§ 308.1 Eligibility of a vessel and its owner for insurance.

Interim insurance is available on any vessel specified in this subpart provided applications for interim insurance are submitted as required in Subparts B, C, and D of this part; and such vessel shall be eligible for insurance, unless the Maritime Administrator determines otherwise, within one of the following categories:

(a) A vessel registered, enrolled or licensed under the laws of the United States; any tug or barge or other watercraft (documented under the laws of the United States, or undocumented) owned by a citizen of the United States, used in essential water transportation within the territorial waters of the United States; and United States citizen-owned watercraft in the fishing trade or industry, except when used exclusively in or for sport fishing.

(b) A foreign-flag vessel under Panamanian, Honduran or Liberian registry, 1,500 gross tons and over, self-propelled, and not over twenty years of age (unless authorized by the Maritime Administration), which is subject to an unqualified Contract of Commitment with the United States in form as required by the Maritime Administration, and which is:

(1) Owned by a U.S. corporation, or a foreign corporation in which a majority of the stock is owned and controlled by United States citizens, whether direct or through intervening corporations, foreign or domestic. Where such intervening corporations are foreign, the ultimate majority ownership and control of the stock of such corporations must be vested in a citizen or citizens of the United States as defined in section 1201 (d), Merchant Marine Act, 1936, as amended; or

(2) Owned by a foreign corporation which is not directly or beneficially owned by United States citizens or corporations, but which vessel is under a long-term charter or other long-term contract covering the use of the vessel on terms deemed by the Maritime Administration to subject the vessel to U.S. control in the event of emergency. The charterer of such a vessel must be either a U.S. corporation or a foreign corporation in which a majority of the stock is owned and controlled by U.S. citizens, whether direct or through intervening corporations, foreign or domestic. Where

such intervening corporations are foreign, ultimate majority ownership and control of the stock of such corporations must be vested in a citizen or citizens of the United States as defined in section 1201 (d), Merchant Marine Act, 1936, as amended.

(c) All other vessels will be insured at the sole discretion of the Maritime Administrator but only when engaged in a service which has been determined by the Maritime Administrator to be in the interest of the national defense or the national economy of the United States. § 308.2 Change in status of a vessel after interim binders have been issued.

(a) It is the intention of the parties that any breach of the warranty prescribed hereunder as to vessels in all categories with respect to compliance with Department of Commerce Transportation Orders T-1 and T-2, and the additional warranties prescribed as to vessels in categories (b) (1) and (b) (2) with respect to maintenance of eligibility for insurance, and availability of the insured vessels to the U.S. Government in time of emergency and vessels in category (c) as to operation in approved service, shall terminate the binder and any insurance attaching thereunder.

(b) In the event of the sale, demise charter, requisition, confiscation, change of flag or total loss thereof, or any other change in the status which, by the terms of the binder, causes same to terminate, prompt notice shall be given in writing to the underwriting agent that issued the binder.

§ 308.3 Applications for insurance, supporting documents and payment of binding fees.

(a) Separate applications shall be filed for war risk hull insurance, war risk protection and indemnity insurance, and Second Seamen's war risk insurance, for each vessel to be covered by such insurance. Disbursements insurance, limited to consumable and subsistence stores. slop chests, bar stock and bunker fuel, is available as added coverage upon application for war risk hull insurance. All applications for war risk hull insurance shall be accompanied by information in required form, in duplicate, relating to the vessel for use by the Maritime Administrator in determining the value thereof pursuant to Maritime Administration General Order 82, as amended

from time to time, as published in the FEDERAL REGISTER.

(b) An applicant submitting more than one insurance application at the same time is only required to submit a single citizenship certificate or single set of citizenship certificates, as the case may be, pursuant to §§ 308.101, 308.201, and 308.301.

(c) Applications for war risk hull and protection and indemnity insurance in all eligible categories under this General Order, as revised shall include a warranty that at all times during the effective period of the binder and any insurance issued thereunder, the insured vessel will comply with Department of Commerce Transportation Orders T-1 and T-2 or any modification thereof so long as they remain in force; and, without prior approval of the Maritime Administration, the insured vessel will not be chartered for a period of longer than six (6) months, or for a voyage or voyages the duration of which will probably exceed six (6) months, to any person not a citizen of the United States, nor be chartered to such a non-citizen under a demise or bareboat form of charter, nor be chartered to such a non-citizen for the carriage of cargoes of any kind to or from any of the countries listed in Maritime Administration General Order 59 or any modification thereof, so long as it remains in force, or for use in the fisheries.

EXPLANATORY NOTE: Inasmuch as the warranties described in subparagraph (c) are in effect during the entire period of the binder and any insurance issued thereunder, the requirement of "prior approval" by the Maritime Administration of charters to noncitizens in the categories therein described is applicable to any such charters in existence at the time applicant applies for such insurance. Existing charters which are subject to this requirement include charters or contracts of affreightment to non-citizens which will extend for a period of more than six (6) months subsequent to the date of application or under which the insured vessel is committed to make a voyage or voyages which will extend for more than six (6) months subsequent to such date.

(d) Applications on a vessel in category (a) shall contain a warranty that at and from the date of issuance of the interim binder and for and during the term of any insurance attaching thereunder, such vessel will remain eligible within its category.

(e) In addition, on vessels in categories (b) (1) and (b) (2), the applica

tion shall contain the further warranties that at all times the vessel will remain eligible within its applicable category and that the insured vessel will be made available for use by the U.S. Government pursuant to the signed Contract of Commitment submitted with the insurance application as required by the Maritime Administration. Applications in these categories shall also be accompanied by a certified copy of any official action or approval which may be required by the government of the country of registry as a prerequisite to the execution of a Contract of Commitment with the United States.

(f) Applications for insurance on a vessel in category (c) shall contain a warranty that at all times the vessel will remain in the approved service.

(g) An application for insurance on each vessel in categories (b) (1) and (b) (2) shall be accompanied by an executed Contract of Commitment (in triplicate), in form as prescribed in § 308.5. On a vessel in either category, the applicant is also required to agree that any charter or other contract covering the use of the vessel during the period of the binder and any insurance attaching thereunder shall be subject to termination or suspension without notice in the event the United States requires the use of the vessel under the voluntary Contract of Commitment submitted by the applicant. With respect to a vessel in category (b) (2), the application shall be jointly executed by both the owner and charterer. In the event the vessel is determined to be ineligible under the terms of this revised order, the applicants will be so advised and the executed Contract of Commitment returned by the Maritime Administration.

(h) In addition to the executed Contract of Commitment, an application for insurance on a vessel in category (b) (1) shall also be supported by citizenship certificate(s) in duplicate, in form as prescribed in § 308.4 establishing majority ownership and control of the vesselowning corporation by U.S. citizens, whether direct or through intervening corporations, as specified in §§ 308.101, 308.201, and 308.301.

(i) An application for insurance on a vessel in category (b) (2) shall be jointly submitted by the owner and charterer, and in addition to the executed Contract of Commitment, shall also be supported by a copy of the long-term charter or

other long-term contract covering the use of the vessel and all addenda, certified to be full and complete copies (except as to rate of hire or freight); and citizenship certificate(s) in duplicate, in form as prescribed in § 308.4, establishing majority ownership and control of the charterer by U.S. citizens, whether direct or through intervening corporations as specified in §§ 308.101, 308.201, and 308.301. The charterer shall also furnish the Maritime Administration with a certified copy of any subsequent amendments to such charter.

(j) With respect to a vessel considered to be under category (c) the applicant shall first submit a statement in quadruplicate describing the service of the vessel and containing the reasons such service is considered by the applicant to be in the interest of the national defense or the national economy of the United States. If the requisite finding is made by the Maritime Administrator with respect to such service, the applicant shall thereafter submit an application in form as prescribed in §§ 308.101, 308.201, and 308.301 attaching thereto a copy of the statement of service previously submitted. If, thereafter, there is a change in flag or service, a new statement of service must be submitted by applicant for the purpose of obtaining a further finding as to such new service, prior to the filing of a new application for insurance on such vessel.

(k) All insurance applications covering category (a) vessels shall be made in duplicate to the American War Risk Agency, 99 John Street, New York, New York, 10038, Underwriting Agent for the Maritime Administration, as prescribed in § 308.101 (War Risk Hull Insurance), § 308.201 (War Risk P & I Insurance) and § 308.301 (Second Seamen's War Risk Insurance).

(1) All other insurance applications shall be made in triplicate to the Division of Insurance, U.S. Maritime Administration, Washington, D.C., 20235.

(m) All requests for changes to binders and inquiries relative to the insurance after the interim binders have been issued shall be directed to the American War Risk Agency in New York, at the above address.

(n) A check payable to the "Maritime Adm.-Commerce," for the total amount of all binding fees payable by each applicant shall accompany the applications. Binding fees are not returnable unless applications are rejected.

(0) Copies of insurance applications and the certificate prescribed for use in establishing citizenship, and the Contract of Commitment, may be obtained from the Underwriting Agent, in New York at the above address, and from the Maritime Administration, Washington, D.C.

[G.O. 75, 2d Rev., 26 F.R. 4541, May 26, 1961, as amended at 26 F.R. 5880, June 30, 1961]

§ 308.4 Form of certificate of citizenship.

Certificates of citizenship in the following form shall be submitted in duplicate:

(Give sequence of majority ownership and control by all owning or controlling corporations or other owners, if any, and furnish full information as to each; if above space is not adequate, continue on back of this Form)

a corporation organized and existing under the laws of the State of

(Where incorporated) the majority (51% or more) of the stock of which corporation is owned and controlled by citizens of the United States;

That of the stock interests shown above to be owned and controlled by United States citizens, none is held beneficially for a noncitizen.

NOTE: The United States Criminal Code makes it a criminal offense for any person knowingly to make a false statement or representation to, or to conceal a material fact from, any department or agency of the United States as to any matter within its Jurisdiction (18 U.S.C. 1001), or to file a false, fictitious or fraudulent claim against the United States (18 U.S.C. 287).

(Certificates of Citizenship to be submitted, in duplicate, with insurance application.) § 308.5 Form of voluntary Contract of Commitment.

All applications for insurance under category (b) (1) shall be accompanied by an executed Contract of Commitment, in triplicate, in the following form, executed by the vessel owner. This same form of contract (adapted to include both the vessel owner and the long-term charterer as signatories) shall be jointly executed by the owner and charterer, in triplicate, and submitted with applications for insurance under category (b) (2). All Contracts of Commitment shall be executed and submitted on standard contract forms which may be obtained from the Underwriting Agent, American War Risk Agency, 99 John Street, New York, New York, 10038, or from the U.S. Maritime Administration, Washington, D.C., 20235. (Note: effective date of Contract of Commitment will be the effective date of the binder and will be inserted by the Maritime Administration.)

Contract MA.

OWNER'S CONTRACT OF COMMITMENT (Pan-Hon-Lib vessels)

This agreement, made as of 19. by and between the United States of America, acting by and through the Department of Commerce, Maritime Administration or its successor (herein called the "United States"), and ------) a corporation organized and existing under the laws of (herein called the "Owner"), and having its principal place of business at

WITNESSETH

Whereas, on November 23, 1959, the Maritime Administrator found that vessels in certain categories under Panamanian, Honduran or Liberian registry are engaged in services deemed to be in the interest of the national defense of the United States, and Whereas, by reason of the aforesaid finding, such vessels became eligible for interim war risk insurance as authorized by the

Maritime Administration on September 28, 1959 (24 F.R. 8093), pursuant to Title XII, Merchant Marine Act, 1936, as amended, provided such vessels maintain their eligibility at all times in compliance with the requirements of the Maritime Administration under General Order 75, as amended, including inter alia the requirement that the ship-owning corporation or the longterm charterer shall be majority-owned and controlled by United States citizens, and that such vessel shall be made available to the United States upon request in the event of national emergency, as described in Article (1) hereof, pursuant to a voluntary Contract of Commitment, and

Whereas, the Owner has applied for interim war risk insurance on the SS (hereinafter called the "Vessel"),

Whereas, based upon the representations and warranties contained in the Owner's application for interim war risk insurance, it has been determined that the Vessel qualifies for such insurance within the eligibility category designated by the Owner, and the parties hereto desire to enter into a voluntary Contract of Commitment covering availability of such Vessel to the United States in the event of national emergency as described in Article (1) hereof;

Now therefore, in consideration of the premises and other good and valuable considerations hereinafter set forth, the parties hereto mutually agree as follows:

(1) The Owner hereby commits itself to make the Vessel available to the United States during any period in which vessels may be requisitioned under section 902 of the Merchant Marine Act, 1936, as amended, 1.e., whenever the President of the United States of America shall proclaim that the security of the national defense makes it advisable or during any national emergency which may have been declared by proclamation of the President of the United States, and expressly agrees that any charter or other contract covering the use of the Vessel during the period covered by the interim war risk insurance binder and the period of any insurance attaching thereunder shall be subject to termination or suspension without notice in the event the United States requests the use of the Vessel under this voluntary Contract of Commitment.

(2) Upon the request of the United States, acting through the Department of Commerce, Maritime Administration, or its successor, or through the Department of the Navy, pursuant to authorization from the Department of Commerce, Maritime Administration, the Vessels shall be made available as directed by such Department, wherever the Vessel may then be, whether at sea or in port, at the option of such Department,

for purchase or for use (under a time or bareboat form of charter) for such period or periods of time as required by the United States.

(3) In the event the Department of the Navy exercises the authority referred to in Article (2) above, it is understood that (a) if time permits, the Maritime Administrator, upon advice by the Chief of Naval Operations, will notify the Owner and also the Master of the Vessel to make the Vessel available to Naval authority, and will also direct the Master to report to the appropriate Naval Commander for operational control or (b) if time does not permit, and the Senior Naval Commander in or for the area or his authorized representative shall have found it necessary, he will take immediate operational control of the Vessel, after which the Maritime Administrator, upon receipt of advice of such action from the Chief of Naval Operations, will confirm such action to the Owner and also to the Master; with such confirmation to be retroactive to and effective as of the day and hour when control was assumed by the Naval authorities.

(4) As soon as practicable after the United States has assumed operational control of the Vessel as aforesaid, either through the Maritime Administration directly, or through the Department of the Navy, the Maritime Administration will tender to the Owner an agreement containing the same terms and conditions upon which a vessel of the United States could be requisitioned for purchase or charter in accordance with the applicable provisions of section 902(a), Merchant Marine Act, 1936, as amended.

(5) This voluntary Contract of Commitment is not intended, nor shall it be deemed, to affect or modify in any respect the terms and obligations contained in any other agreement or contract of whatsoever nature under which the Vessel is or may hereafter become separately committed to the use of the United States during the period described in Article (1) hereof.

(6) Subject to the various warranties, agreements and representations of the Owner as contained in the Owner's application for interim war risk insurance, submitted with this Contract, the United States hereby undertakes and agrees to provide such war risk insurance on the Vessel pursuant to regulations published in the FEDERAL REG(General Order 75), as amended from time to time.

ISTER

(7) It is the intention and understanding of the parties hereto that the period of this Contract of Commitment shall be coextensive with the period of the interim war risk insurance binder and any insurance issued thereunder.

In witness whereof, this voluntary Contract of Commitment has been executed in triplicate by the United States on the