CG-5586-3 Financial Guaranty

U.S. DEPARTMENT OF
HOMELAND SECURITY
U.S. COAST GUARD
CG-5586-3 (Rev. 05-06)

FINANCIAL GUARANTY

OMB Approval No.1625-0046
(Expires 09-06)

Financial Guaranty No.

FINANCIAL GUARANTY FURNISHED AS EVIDENCE OF FINANCIAL RESPONSIBILITY UNDER THE OIL POLLUTION
ACT OF 1990 AND THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT,
AS AMENDED
1.

,
(Name of Vessel Operator)

the operator of each vessel named in the annexed schedules (“covered vessel”), desires to establish evidence of financial
responsibility for the owner and operator (referred to collectively as “Operator”) of each covered vessel in accordance with
the Oil Pollution Act of 1990 (“OPA 90”) and the Comprehensive Environmental Response, Compensation, and Liability
Act, as amended (“CERCLA”) (referred to collectively as the “Acts”). The undersigned Financial Guarantor or Guarantors
(“Guarantor”) here by guarantees, subject to the provisions hereof, to discharge the Operator’s liability with respect to
each covered vessel for costs and damages under section 1002 of OPA 90, as limited by section 1004(a), or section
107(a)(1) of CERCLA, as limited by sections 107(c)(1)(B) and (A), or both, in an amount equal to the total applicable
amount determined in accordance with the Applicable Amount Table below. The Operator and the Guarantor agree that if
at the time of an incident, release, or threatened release a covered vessel is a tank vessel or is carrying a hazardous
substance as cargo, the limit of liability of the Guarantor hereunder shall be the total applicable amount appropriate for
such a vessel determined in accordance with the Applicable Amount Table below. The amount and scope of the
Guarantor’s liability are not further conditioned or dependent in any way upon any contract, agreement, or understanding
between the Operator and the Guarantor. The Guarantor shall furnish written notice to the Director, Coast Guard National
Pollution Funds Center (“Center”), of all judgments rendered and payments made by the Guarantor under this Financial
Guaranty.
2. Any claim, including any claim by right of subrogation, against the Operator for costs and damages arising
under either section 1002 of OPA 90 as limited by section 1004(a), or section 107(a)(1) of CERCLA as limited by sections
107(c)(1)(A) and (B), or both, may be brought directly against the Guarantor and the Guarantor consents to suit with
respect to these claims. However, in any direct action under OPA 90 the Guarantor’s liability per vessel per incident shall
not exceed the amount determined under part I of the Applicable Amount Table below and, in any direct action under
CERCLA the Guarantor’s liability per vessel per release or threatened release shall not exceed the amount determined
under part II of the Applicable Amount Table below. The Guarantor’s obligation hereunder with respect to any one
incident or release or threatened release shall be reduced by all payments or succession of payments for costs and
damages, to one or more claimants, made by or on behalf of the Operator under OPA 90 or CERCLA or both, as
applicable, for which the Operator is liable. The Guarantor shall be entitled to invoke only the following rights and
defenses in any direct action:
(1) The incident, release, or threatened release was caused by the willful misconduct of the Operator.
(2) Any defense that the Operator may raise under the Acts.
(3) A defense relating to the amount of a claim or claims, filed in any action in any court or other proceeding, that
exceeds the amount of this Guaranty with respect to an incident or with respect to a release or threatened
release.
(4) A defense relating to the amount of a claim or claims that exceeds the amount of this Guaranty, which amount
is based on the gross tonnage of the covered vessel as entered on the Vessel’s International Tonnage
Certificate or other official, applicable certificate of measurement, except where the guarantor knew or should
have known that the applicable certificate was incorrect.
(5) The claim is not one made under either of the Acts.
An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it
displays a valid OMB control number.
The Coast Guard estimates that the average burden for completing this form is 30 minutes. You may submit any
comments concerning the accuracy of this burden estimate or any suggestion for reducing the burden to the:
Commandant (NPFC), U.S. Coast Guard, 2100 2nd Street, SW, Washington, DC 20593-0001 or Office of Management
and Budget, Paperwork Reduction Project (1625-0046), Washington, DC 20503.

Page 2 of CG-5586-3 (Rev. 04-06)

Financial Guaranty No.

3. The Guarantor’s liability under this Guaranty shall attach only in relation to each incident, release, or
threatened release occurring on or after the effective date and before the termination date of this Guaranty. The effective
date of this Guaranty for each covered vessel listed below is the date the vessel is named in or added to the schedules
below. For each covered vessel, the termination date of the Guaranty is 30 days after the date of receipt by the Center of
written notice that the Guarantor has elected to terminate this Guaranty, with respect to any of the covered vessels, and
has so notified the vessel Operator identified above on the schedule below. Termination of this Guaranty as to any vessel
does not affect the liability of the Guarantor in connection with an incident, release, or threatened release occurring prior
to the date the termination becomes effective.
4. If, during the currency of this Guaranty, the Operator requests that a vessel become subject to this Guaranty,
and if the Guarantor accedes to that request and so notifies the Center in writing, then that vessel shall be considered
included in Schedule B as a covered vessel and subject to this Guaranty.
5. The Guarantor designates
(Name of Agent)
with offices at

(Address)
as the Guarantor’s agent in the United States for service of process for purposes of this Guaranty and for receipt of
notices of designation and presentations of claims under the Acts. If the designated agent cannot be served due to death,
disability or unavailability, the Director, Coast Guard National Pollution Funds Center, is the agent for service of process.
6. No more than four Financial Guarantors may execute this Guaranty. If more than one Guarantor executes this
Guaranty, each Guarantor binds itself jointly and severally for the purpose of allowing a joint action or actions against any
or all of the Guarantors, and for all other purposes each Guarantor binds itself, jointly and severally with the Operator, for
the payment of the percentage of sums only as is set forth opposite the name of the Guarantor. If no limit is indicated for
a Guarantor or Guarantors, the liability of such Guarantor or Guarantors shall be joint and several for the total of the
unspecified portions.

(Name of Lead Guarantor)
is designated as the lead guarantor having authority to bind all guarantors for actions of guarantors under the Acts,
including but not limited to receipt of designation of source, advertisement of a designation, and receipt and settlement of
claims (inapplicable if only one Financial Guarantor executes this Guaranty).
7. Title 33 CFR part 138 governs this Financial Guaranty.
Effective Date:
(Month/Day/Year and Place of Execution)

(Typed Name of Guarantor)

(Address of Guarantor)

(Percentage of Participation)
By:
(Signature)

(Typed Name and Title of Person Signing Above)
[NOTE: For each co-Guarantor, provide information in the same manner as for Guarantor above.]

Page 3 of CG-5586-3 (Rev. 04-06)

APPLICABLE AMOUNT TABLE

(I)

Applicable Amount Under the Oil Pollution Act of 1990.
VESSEL TYPE
Tank vessel
(except a tank vessel on which no
liquid hazardous material in bulk is
being carried as cargo or cargo
residue, and on which the only oil
carried as cargo or cargo residue is
an animal fat or vegetable oil, as
those terms are used in section 2
of the Edible Oil Regulatory
Reform Act (Pub. L.104-55))
Tank vessel

VESSEL’S GROSS TONS
Over 300 gross tons* but not to
exceed 3,000 gross tons.

The greater of $2,000,000 or
$1,200 per gross ton.

Over 3,000 gross tons.

The greater of $10,000,000 or
$1,200 per gross ton.

Over 300 gross tons.*

The greater of $500,000 or $600
per gross ton.

(except a tank vessel on which no
liquid hazardous material in bulk is
being carried as cargo or cargo
residue, and on which the only oil
carried as cargo or cargo residue is
an animal fat or vegetable oil, as
those terms are used in section 2
of the Edible Oil Regulatory
Reform Act (Pub. L.104-55))
Vessel other than a tank vessel

APPLICABLE AMOUNT

(specified above)

*This minimum gross ton limit does not apply to any vessel using the waters of the U.S. Exclusive Economic Zone to transship or lighter oil
destined for a place subject to the jurisdiction of the United States (as specified in 33 CFR 138.12(a)(1)).

(II)

Applicable Amount Under the Comprehensive Environmental Response, Compensation, and Liability Act,
as Amended.
VESSEL TYPE

(III)

APPLICABLE AMOUNT

Vessel over 300 gross tons carrying hazardous
substance as cargo

The greater of $5,000,000 or $300 per gross ton.

Any other vessel over 300 gross tons

The greater of $500,000 or $300 per gross ton.

Total Applicable Amount = Maximum applicable amount calculated under (I) plus maximum applicable amount
calculated under (II).

Page 4 of CG-5586-3 (Rev. 05-06)

SCHEDULE A

VESSELS INITIALLY LISTED

VESSEL

GROSS TONS

Financial Guaranty No.

OPERATOR

Page 5 of CG-5586-3 (Rev. 05-06)

SCHEDULE B
VESSEL

VESSELS ADDED IN
ACCORDANCE WITH CLAUSE 4
GROSS TONS

OPERATOR

Financial Guaranty No.

DATE ADDED