Form FMC-48 Ocean Transportation Intermediary (OTI) Bond

Form FMC-48
FEDERAL MARITIME COMMISSION
Ocean Transportation Intermediary (OTI) Bond
(Section 19, Shipping Act of 1984, as amended by the Ocean Shipping Reform
Act of 1998 and the Coast Guard Authorization Act of 1998)
[indicate whether
NVOCC
or
Freight
Forwarder],
as
Principal
(hereinafter
“Principal”), and
, as Surety
(hereinafter “Surety”) are held and firmly bound unto the United
States of America in the sum of $
for the payment of
which sum we bind ourselves, our heirs, executors, administrators,
successors and assigns, jointly and severally.
Whereas, Principal operates as an OTI in the waterborne
foreign commerce of the United States in accordance with the
Shipping Act of 1984, as amended by the Ocean Shipping Reform Act
of 1998 and the Coast Guard Authorization Act of 1998 (“1984
Act”), 46 U.S.C. app 1702, and, if necessary, has a valid tariff
published pursuant to 46 CFR part 515 and 520, and pursuant to
section 19 of the 1984 Act, files this bond with the Commission;
Now, Therefore, The condition of this obligation is that the
penalty amount of this bond shall be available to pay any judgment
or any settlement made pursuant to a claim under 46 CFR §
515.23(b) for damages against the Principal arising from the
Principal's transportation-related activities or order for
reparations issued pursuant to section 11 of the 1984 Act, 46
U.S.C. app. 1710, or any penalty assessed against the Principal
pursuant to section 13 of the 1984 Act, 46 U.S.C. app. 1712.
This bond shall inure to the benefit of any and all persons
who have obtained a judgment or a settlement made pursuant to a
claim under 46 CFR § 515.23(b) for damages against the Principal
arising from its transportation-related activities or order of
reparation issued pursuant to section 11 of the 1984 Act, and to
the benefit of the Federal Maritime Commission for any penalty
assessed against the Principal pursuant to section 13 of the 1984
Act.
However, the bond shall not apply to shipments of used
household goods and personal effects for the account of the
Department of Defense or the account of federal civilian executive
agencies shipping under the International Household Goods Program
administered by the General Services Administration.
Form FMC-48
(Rev. 05/99)

1

The liability of the Surety shall not be discharged by any
payment or succession of payments hereunder, unless and until such
payment or payments shall aggregate the penalty of this bond, and
in no event shall the Surety's total obligation hereunder exceed
said penalty regardless of the number of claims or claimants.
This bond is effective the
day of
,
, and shall continue in effect until discharged or terminated as
herein provided. The Principal or the Surety may at any time
terminate this bond by written notice to the Federal Maritime
Commission at its office in Washington, DC.
Such termination
shall become effective thirty (30) days after receipt of said
notice by the Commission. The Surety shall not be liable for any
transportation-related activities of the Principal after the
expiration of the 30-day period but such termination shall not
affect the liability of the Principal and Surety for any event
occurring prior to the date when said termination becomes
effective.
The Surety consents to be sued directly in respect of any
bona fide claim owed by Principal for damages, reparations or
penalties arising from the transportation-related activities under
the 1984 Act of Principal in the event that such legal liability
has not been discharged by the Principal or Surety after a
claimant has obtained a final judgment (after appeal, if any)
against the Principal from a United States Federal or State Court
of competent jurisdiction and has complied with the procedures for
collecting on such a judgment pursuant to 46 CFR § 515.23(b), the
Federal Maritime Commission, or where all parties and claimants
otherwise mutually consent, from a foreign court, or where such
claimant has become entitled to payment of a specified sum by
virtue of a compromise settlement agreement made with the
Principal and/or Surety pursuant to 46 CFR § 515.23(b), whereby,
upon payment of the agreed sum, the Surety is to be fully,
irrevocably and unconditionally discharged from all further
liability to such claimant; provided, however, that Surety’s total
obligation hereunder shall not exceed the amount set forth in 46
CFR § 515.21, as applicable.
The underwriting Surety will promptly notify the Director,
Bureau of Consumer Complaints and Licensing, Federal Maritime
Commission, Washington, DC 20573, of any claim(s) against this
bond.

Form FMC-48
(Rev. 05/99)

2

Signed and sealed this

day of

,

.

(Please type name of signer under each signature.)
Individual Principal or Partner
Business Address
Individual Principal or Partner
Business Address
Individual Principal or Partner
Business Address

Trade Name, If Any
Corporate Principal
State of Incorporation

Trade Name, If Any
Business Address
By
Title
(Affix Corporate Seal)
Corporate Surety
Business Address
By
Title
(Affix Corporate Seal)
Form FMC-48
(Rev. 05/99)

3