Us Code § 40902 - Financial responsibility
Full text of Us Code United States Code § 40902 — Financial responsibility, with citation guidance and answers to common questions.
§ 40902. Financial responsibility
(a)
(1) in a form and amount determined by the Federal Maritime Commission to insure financial responsibility; and
(2) issued by a surety company found acceptable by the Secretary of the Treasury.
(b)
(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
(B) when the claim is deemed valid by the surety company after the ocean transportation intermediary has failed to respond to adequate notice to address the validity of the claim; and
(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)
(d)
(Pub. L. 109–304, §7, Oct. 6, 2006, 120 Stat. 1538; Pub. L. 115–282, title VII, §707(c), Dec. 4, 2018, 132 Stat. 4295.)
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 40902 | 46 App.:1718(b). | 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.
Editorial Notes
Amendments
2018—Subsec. (a). Pub. L. 115–282 inserted "advertise, hold oneself out, or" after "may not" in introductory provisions.
About This Section
46 U.S.C. § 40902 is part of Title 46 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 46 U.S.C. § 40902. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
How to Read This Statute
Statutes are organized by title, chapter, section, and subsection. Pay attention to words like "shall," "may," "and," and "or," because they determine whether a requirement is mandatory or permissive and whether multiple conditions must all be met. Historical notes and amendments often appear at the end of a section.
Using This Page
This page is intended for research and educational use. Lawyers, students, journalists, and compliance professionals can use it as a starting point, but should always verify the current text through an official government source before relying on it for legal advice, filings, or compliance decisions.