FMC-69 Ocean Transportation Intermediary Group Supplemental Cov

Ocean Transportation Intermediary (OTI) Group Bond Form
Form FMC-69
FEDERAL MARITIME COMMISSION
Ocean Transportation Intermediary (OTI) Group Supplemental Coverage Bond Form
(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 a group or association of OTIs in the
waterborne foreign commerce of the United States and pursuant to section 19 of 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"), files this bond with the Federal Maritime Commission;
NOW, THEREFORE, the conditions of this obligation are that the penalty amount of this bond
shall be available to pay any judgment obtained or any settlement made pursuant to a claim
under 46 CFR § 515.23(b) against the OTIs enumerated in Appendix A of this bond for damages
arising from any or all of the identified OTIs' transportation-related activities under the 1984
Act, 46 U.S.C. app. 1701 et seq., or order for reparations issued pursuant to section 11 of the
1984 Act, 46 U.S.C. app. 1710, or any penalty assessed pursuant to section 13 of the 1984 Act,
46 U.S.C. app. 1712, that are not covered by the identified OTIs' individual insurance
policy(ies), guaranty(ies) or surety bond(s).
This bond shall inure to the benefit of any and all persons who have obtained a judgment or
made a settlement pursuant to a claim under 46 CFR § 515.23(b) for damages against any or all
of the OTIs identified in Appendix A not covered by said OTIs' insurance policy(ies),
guaranty(ies) or surety bond(s) arising from said OTIs' transportation-related activities under the
1984 Act, or order for reparation issued pursuant to section 11 of the 1984 Act, and to the benefit
of the Federal Maritime Commission for any penalty assessed against said OTIs 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.
The Surety consents to be sued directly in respect of any bona fide claim owed by any or all of
the OTIs identified in Appendix A for damages, reparations or penalties arising from the
transportation-related activities under the 1984 Act of the OTIs in the event that such legal

liability has not been discharged by the OTIs or Surety after a claimant has obtained a final
judgment (after appeal, if any) against the OTIs 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 OTIs 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.
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 the amount per member OTI
set forth in 46 CFR § 515.21 identified in Appendix A, or the amount per group or association of
OTIs set forth in 46 CFR § 515.21, regardless of the number of OTIs, 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 OTIs identified in Appendix A as covered by the Principal after the expiration of the 30day period, but such termination shall not affect the liability of the Principal and Surety for any
transportation-related activities occurring prior to the date when said termination becomes
effective.
The Principal or financial responsibility provider will promptly notify the underwriting Surety
and the Director, Bureau of Consumer Complaints and Licensing, Federal Maritime
Commission, Washington, DC 20573, of any additions, deletions or changes to the OTIs
enumerated in Appendix A. In the event of additions to Appendix A, coverage will be effective
upon receipt of such notice, in writing, by the Commission at its office in Washington, DC. In
the event of deletions to Appendix A, termination of coverage for such OTI(s) shall become
effective 30 days after receipt of written notice by the Commission. Neither the Principal nor the
Surety shall be liable for any transportation-related activities of the OTI(s) deleted from
Appendix A after the expiration of the 30-day period, but such termination shall not affect the
liability of the Principal and Surety for any transportation-related activities of said OTI(s)
occurring prior to the date when said termination becomes effective.
The underwriting Surety will promptly notify the Director, Bureau of Certification and
Licensing, Federal Maritime Commission, Washington, DC 20573, of any claim(s) against this
bond.
Signed and sealed this ________________ day of ____________, ________,

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(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
_________________________________________
Place of Incorporation
_________________________________________
Trade Name, if Any
_________________________________________
Business Address (Affix Corporate Seal)
_________________________________________
By
_________________________________________
Title
_________________________________________
Principal's Agent for Service of Process
(Required if Principal is not a U.S. Corporation)
_________________________________________
Agent's Address

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_________________________________________
Corporate Surety
_________________________________________
Business Address (Affix Corporate Seal)
_________________________________________
By
_________________________________________
Title

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