14 CFR Part 374A

yshivers on PROD1PC62 with CFR

Office of the Secretary, DOT

§ 374a.6

no air carrier shall provide transportation to any person it knows, or has
reasons to know, is a candidate or a
person acting on behalf of such candidate, in connection with the campaign of such candidate, except in accordance with, and subject to, the following conditions:
(1) At least once a month the air carrier shall submit to each such candidate or person a statement covering
all unsecured credit extended to such
candidate or person, as the case may be
(whether in connection with the campaign of such candidate or otherwise.)
(2) Such statements shall be mailed
no later than the second business day
following the last day of the billing period, covered by the statement.
(3) The amount of indebtedness
shown on each such statement shall be
payable in full no later than 25 days
after the last day of the billing period,
after which time the indebtedness shall
be overdue.
(4)(i) Unsecured credit shall not be
extended by an air carrier to a candidate, or to any person acting on his
behalf in connection with the campaign
of such candidate, so long as any overdue indebtedness of such candidate to
such air carrier shall remain unpaid, in
whole or in part, or so long as such air
carrier shall know that any overdue indebtedness of such candidate to any
other air carrier remains unpaid, in
whole or in part.
(ii) Unsecured credit shall not be extended by an air carrier to a person
acting on behalf of a candidate, for
transportation in connection with the
campaign of such candidate, so long as
any overdue indebtedness of such person to such carrier shall remain unpaid, in whole or in part, or so long as
such air carrier shall know that any
overdue indebtedness of such person to
any other air carrier remains unpaid,
in whole or in part.
(5)(i) With respect to transportation
in connection with the campaign of
any candidate to be performed after
June 1, 1972, unsecured credit shall not
be extended by an air carrier to any
person acting on behalf of such candidate unless the carrier is authorized
in writing by such candidate to extend
such credit. The foregoing sentence
shall not be construed as requiring the

candidate to assume liability to the
carrier for credit so extended.
(ii) Within 7 days after indebtedness
becomes overdue for any unsecured
credit extended by an air carrier to a
person acting on behalf of a candidate
in accordance with paragraph (a)(5)(i)
of this section, the carrier shall notify
the candidate in writing of the amount
of the overdue indebtedness, and, unless paid in full within 25 days after the
date of such notice, the overdue indebtedness shall be deemed to be the overdue indebtedness of the candidate, for
the purposes of paragraph (b)(4)(i) of
this section.
(b) It shall be presumed that a candidate or person acting on behalf of a
candidate intends to use transportation in connection with the campaign of such candidate for nomination
for election, or election, to Federal office.
(Secs. 204, 407 of the Federal Aviation Act of
1958, as amended, 72 Stat. 743, 766; 49 U.S.C.
1324, 1377. Sec. 401 of the Federal Election
Campaign Act of 1971, 86 Stat. 19, 2 U.S.C.
451)
[SPR–53, 37 FR 9388, May 10, 1972, as amended
by SPR–169, 45 FR 25796, Apr. 16, 1980; SPR–
172, 45 FR 53454, Aug. 12, 1980]

§ 374a.5 Exemption authority.
Air carriers are exempt from the following provisions of Title IV of the
Federal Aviation Act of 1958, as amended: (a) Section 403, (b) section 404(b),
and any and all other provisions of
Title IV of the Federal Aviation Act of
1958, as amended, to the extent necessary to enable air carriers to comply
with the provisions of this part.
§ 374a.6 Reporting requirements.
(a) Air carriers shall make monthly
reports to the Bureau of Transportation Statistics with respect to the
credit for transportation furnished to
candidates, or persons acting on behalf
of candidates, during the period from 6
months before nomination, if any, or
from 6 months before election, until
the date of election. After that 6month period, air carriers shall file
such a report with the Bureau of Transportation Statistics not later than the
20th day following the end of the calendar month in which the election or
nomination takes place, and thereafter

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§ 374a.7

14 CFR Ch. II (1–1–09 Edition)

yshivers on PROD1PC62 with CFR

when any change occurs in that report,
until a negative report is filed showing
that no debt for such extension of credit is owed to the carrier.
(b)(1) A separate report shall be filed
for each candidate with an aggregate
indebtedness balance of over $5,000 on
the last day of the month to which the
report pertains. The report shall cover
all debts incurred by the candidate,
whether or not incurred in connection
with his campaign, and all debts incurred by persons acting on his behalf
in connection with such campaign. The
indebtedness accounts reported shall be
those which the air carrier knows, or
has reason to know, have been incurred
by or on behalf of a candidate; and it
shall be presumed that the transportation for which the indebtedness has
been incurred is intended to be used in
connection with the campaign of such
candidate for nomination for election,
or election, to Federal office.
(2) The reports required by this paragraph (b) shall be filed with the Office
of Airline Information not later than
the 20th day following the end of the
calendar month to which the report
pertains. They shall include the following data: (i) Name of account; (ii)
the credit limit established for such account; (iii) the balance, if any, of the
amount payable for transportation not
paid for in advance; (iv) any unpaid
balance of the charges for such transportation as of the last day of the
month covered by the report, and the
length of time that such balance has
remained unpaid; and (v) a description
of the type and value of any bond, collateral, or other security securing such
unpaid balance.
(3) The report required by this paragraph (b) shall be in the form attached
hereto as Appendix A. 1
(c) A separate report shall be filed for
each person acting on behalf of any
candidate, if the aggregate indebtedness balance of such person to the reporting air carrier (including all debts
incurred by such person, whether or
not incurred in connection with the
campaign of a candidate, as defined in
this part) is over $5,000 on the last day
of the month to which the report pertains. The report shall be filed with the
1 Filed

as part of the original document.

Office of Airline Information not later
than the 20th day following the end of
the calendar month to which the report
pertains and shall include (1) the credit
limitation established for such person;
(2) the balance, if any, of the amount
payable for transportation not paid for
in advance; (3) any unpaid balance of
the charges for such transportation as
of the last day of the month covered by
the report, and the length of time that
such balance has remained unpaid; and
(4) a description of the type and value
of any bond, collateral, or other security securing such unpaid balance.
[SPR–53, 37 FR 9388, May 10, 1972, as amended
by SPR–190, 47 FR 32414, July 27, 1982; 60 FR
66726, Dec. 26, 1995]

§ 374a.7 Record
retention
requirements.
(a) Every air carrier subject to the
part shall retain for 2 years after a
Federal election true copies of the following documents at its principal or
general office in the United States:
(1) All documents which evidence or
reflect the furnishing of transportation
to a candidate for political office or a
person acting on his behalf;
(2) All statements, invoices, bills, and
receipts with respect to the furnishing
of such transportation referred to in
paragraph (a)(1) of this section.
(b) Every air carrier shall make the
documents listed in this section available in the United States upon request
by an authorized representative of the
DOT and shall permit such representative to make such notes and copies
thereof as he deems appropriate.
[SPR–53, 37 FR 9388, May 10, 1972, as amended
at 60 FR 66726, Dec. 26, 1995]

§ 374a.8 Prospective
application
of
part.
The provisions of this part shall
apply only to the extension of credit by
an air carrier to a candidate, or to a
person acting on his behalf, which is
made subsequent to the effective date
of this part, and shall not be applicable
to debts incurred prior to such date but
which are unpaid as of the effective
date of this part. The provisions of this
part will be applicable, however, to all
credit transactions which occur subsequent to the effective date of the part
even though the credit account in

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