14 CFR Part 374

§ 374.1

14 CFR Ch. II (1–1–99 Edition)

374.3 Compliance with the Consumer Credit
Protection Act and regulations.
374.4 Enforcement procedure.
AUTHORITY: 15 U.S.C. 1601–1693r; 49 U.S.C.
Subtitle VII; and 12 CFR parts 202 and 226.
SOURCE: SPR–175, 46 FR 43960, Sept. 2, 1981,
unless otherwise noted.

§ 374.1 Purpose.
The purpose of this part is to state
the Department of Transportation’s responsibility to enforce air carrier and
foreign air carrier compliance with
Subchapters I, III, IV, V and VI of the
Consumer Credit Protection Act and
Regulations B and Z of the Board of
Governors of the Federal Reserve System.
[62 FR 25841, May 12, 1997]

§ 374.2 Applicability.
This part is applicable to all air carriers and foreign air carriers engaging
in consumer credit transactions.
§ 374.3 Compliance with the Consumer
Credit Protection Act and regulations.
(a) Each air carrier and foreign air
carrier shall comply with the requirements of the Consumer Credit Protection Act, 15 U.S.C. 1601–1693r. Any violation of the following requirements of
that Act will be a violation of 49 U.S.C.
Subtitle VII, enforceable by the Department of Transportation:
(1) The Truth in Lending Act, as supplemented by the Fair Credit Billing
Act, 15 U.S.C. 1601–1667, requiring disclosure of credit terms to the consumer
and prohibiting inaccurate or unfair
credit billing and credit card practices.
(2) The Fair Credit Reporting Act, 15
U.S.C. 1681–1681 setting forth requirements to be met by consumer credit reporting agencies and persons who use
consumer credit reports.
(b) Each air carrier and foreign air
carrier shall comply with the requirements of Regulation B, 12 CFR part 202,
and Regulation Z, 12 CFR part 226, of
the Board of Governors of the Federal
Reserve Board. Any violation of the requirements of those regulations will be
a violation of 49 U.S.C. Subtitle VII,
enforceable by the Department of
Transportation.

§ 374.4

Enforcement procedure.

The statutes and regulations referred
to in § 374.3 may be enforced by an enforcement procedure as set forth in
part 302 of this chapter or by the assessment of civil penalties under 49
U.S.C. 46301.
[62 FR 25842, May 12, 1997]

PART 374a—EXTENSION OF CREDIT
BY AIRLINES TO FEDERAL POLITICAL CANDIDATES
Sec.
374a.1 Purpose.
374a.2 Applicability.
374a.3 Definitions.
374a.4 Conditions governing extension
unsecured credit.
374a.5 Exemption authority.
374a.6 Reporting requirements.
374a.7 Record retention requirements.
374a.8 Prospective application of part.

of

AUTHORITY: 49 U.S.C. chapters 401, 411, 415,
417.
SOURCE: SPR–53, 37 FR 9388, May 10, 1972,
unless otherwise noted.

§ 374a.1

Purpose.

Section 401 of the Federal Election
Campaign Act of 1971 (Pub. L. 92–225, 86
Stat. 19, 2 U.S.C. 451, enacted February
7, 1972, and hereafter referred to as the
‘‘Election Campaign Act’’) directs the
Civil Aeronautics Board to promulgate,
within 90 days after enactment, regulations with respect to the extension of
unsecured credit by any person regulated by the Board to any candidate for
Federal office, or to any person on behalf of such a candidate, for goods furnished or services rendered in connection with the campaign of such candidate for nomination for election, or
election, to such office. The purpose of
this part is to issue rules pursuant to
said section 401 of the Election Campaign Act in accordance with the Civil
Aeronautics
Board’s
responsibility
thereunder.
§ 374a.2

Applicability.

This regulation shall be applicable to
all air carriers as defined herein.

[62 FR 25841, May 12, 1997]

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Office of the Secretary, DOT

§ 374a.4

§ 374a.3 Definitions.
Adequate security means (a) a bond,
issued by a surety meeting the standards prescribed for sureties in part 380
of this chapter, in an amount not less
than one hundred and fifty percent
(150%) of the credit limit established
by the air carrier for the candidate, or
the person acting on behalf of the candidate, as the case may be, by the
terms of which bond the surety undertakes to pay to the air carrier any and
all amounts (not exceeding the face
amount of the bond) for which the assured candidate or the assured person
acting on behalf of a candidate, as the
case may be, is or may become legally
liable to the air carrier for transportation, as defined in this part; or (b)
collateral with a market value equal to
one hundred and fifty percent (150%) of
the established credit limit for such account, which collateral must be deposited in escrow and must consist of Federal, State, or municipal bonds or
other negotiable securities which are
publicly traded on a securities exchange.
Air carrier means any air carrier holding a certificate of public convenience
and necessity issued under section 401
of the Federal Aviation Act of 1958, as
amended.
Candidate means an individual who
seeks nomination for election, or election, to Federal office, whether or not
such individual is elected. For purposes
of this part, an individual shall be
deemed to seek nomination for election, or election, if he has (a) taken the
action necessary under the law of a
State to qualify himself for nomination for election, or election, to Federal office; or (b) received contributions or made expenditures, or given
his consent for any other person to receive contributions or make expenditures, with a view to bringing about his
nomination for election, or election, to
such office.
Election shall have reference to (a) a
general, special, primary, or runoff
election; (b) a convention or caucus of
a political party held to nominate a
candidate; (c) a primary election held
for the selection of delegates to a national nominating convention of a political party; or (d) a primary election
held for the expression of a preference

for the nomination of persons for election to Federal office.
Established credit limit means the dollar limit of credit established by the
carrier extending credit.
Federal office means the office of
President or Vice President of the
United States, or of Senator or Representative in, or Delegate or Resident
Commissioner to, the Congress of the
United States.
Person acting on behalf of a candidate
means (a) a political committee acting
on behalf of, or a person employed by
such candidate or by such political
committee to act on behalf of, such
candidate in connection with such candidate’s campaign for nomination for
election, or election, to Federal office;
(b) a person acting under a contract
with, or as an agent of, such candidate
or political committee to engage in activities in connection with such candidate’s campaign for nomination for
election, or election, to Federal office;
or (c) a person for whom such candidate or political committee pays, directly or indirectly, for services purchased by such person. The term includes persons acting on behalf of more
than one candidate.
Payment in advance means payment
by cash, check, money order, or by
credit card (if the issuer of such card is
not an air carrier or a subsidiary, parent, or affiliate thereof) prior to performance of such transportation by an
air carrier.
Political committee means any committee, association, corporation, or organization which accepts contributions, or makes expenditures, for the
purpose of supporting a candidate or
candidates for nomination for election,
or election, to Federal office.
Transportation means (a) the carriage
of persons or property (including services connected therewith) for compensation or hire to or from any place
in the United States, or (b) the lease or
rental of aircraft, with or without
crew.
[SPR–53, 37 FR 9388, May 10, 1972, as amended
by SPR–173, 45 FR 80099, Dec. 3, 1980]

§ 374a.4 Conditions governing extension of unsecured credit.
(a) Unless adequate security is posted, or full payment in advance is made,

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§ 374a.5

14 CFR Ch. II (1–1–99 Edition)

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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Office of the Secretary, DOT

§ 374a.8

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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Pt. 375

14 CFR Ch. II (1–1–99 Edition)

which the transaction takes place was
opened prior to the effective date of
the part.

PART 375—NAVIGATION OF FOREIGN CIVIL AIRCRAFT WITHIN THE
UNITED STATES

Subpart G—Penalties
375.60

Subpart H—Special Authorization
375.70

AUTHORITY: 49 U.S.C. 1324, 1372, 1502, 1508.
SOURCE: OST Docket No. 42547, 51 FR 7254,
Mar. 3, 1986, unless otherwise noted.

Definitions.
Applicability.
[Reserved]

Subpart A—General

Subpart B—Authorization

§ 375.1

375.10 Certain foreign civil aircraft registered in ICAO member states.
375.11 Other foreign civil aircraft.

Subpart C—Rules Generally Applicable
375.19 Nature of privilege conferred.
375.20 Airworthiness and registration certificates.
375.21 Airmen.
375.22 Flight operations.
375.23 Maximum allowable weights.
375.24 Entry and clearance.
375.25 Unauthorized operations.
375.26 Waiver of sovereign immunity.

Subpart D—Authorized Operations
375.30 Operations other than commercial air
operations.
375.31 Demonstration flights of foreign aircraft.
375.32 Flights incidental to agricultural and
industrial operations outside the United
States.
375.33 Transit flights, irregular operations.
375.34 Indoctrination training.
375.35 Free transportation.
375.36 Lease of foreign civil aircraft without
crew.

Subpart E—Operations Requiring Specific
Preflight Authorization of Filing
375.40 Permits for commercial air operations.
375.41 Agricultural and industrial operations within the United States.
375.42 Transport
operations—occasional
planeload charters.
375.43 Application for foreign aircraft permit.
375.44 Issuance of permit.
375.45 Records and reports of occasional
planeload charters.

Subpart F—Transit Flights.
375.50 Transit flights; scheduled
national air service operations.

Special authorization.

APPENDIX A TO PART 375—FORM 4509

Subpart A—General
Sec.
375.1
375.2
375.3

Penalties.

inter-

Definitions.

As used in this part:
Act means the Federal Aviation Act
of 1958, as amended;
Air transportation means the carriage
by aircraft of persons or property as a
common carrier for compensation or
hire or the carriage of mail by aircraft
in interstate, overseas, or foreign commerce (see section 101 (10) and (23) of
the Federal Aviation Act, 49 U.S.C.
1301);
Category shall indicate a classification of aircraft such as airplane, helicopter, glider, etc.;
Commercial air operations shall mean
operations by foreign civil aircraft engaged in flights for the purpose of crop
dusting, pest control, pipeline patrol,
mapping, surveying, banner towing,
skywriting, or similar agricultural and
industrial operations performed in the
United States, and any operations for
remuneration or hire to, from or within the United States including air carriage involving the discharging or taking on of passengers or cargo at one or
more points in the United States, including carriage of cargo for the operator’s own account if the cargo is to be
resold or otherwise used in the furtherance of a business other than the business of providing carriage by aircraft,
but excluding operations pursuant to
foreign air carrier permits issued under
section 402 of the Act, exemptions, and
all other operations in air transportation.
Exemption means an exemption granted, under section 416(b) of the Act, authorizing air transportation by a foreign air carrier;

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