FMC-68 Guaranty in Respect of Ocean Transportation Intermediary

OMB No. 3072-0018
Expires 12/31/2023

Form FMC-68
FEDERAL MARITIME COMMISSION

Ocean Transportation Intermediary (OTI) Guaranty Form
Guaranty in Respect of Ocean Transportation Intermediary (OTI) Liability for Damages,
Reparations or Penalties Arising from Transportation-Related Activities Under the
Shipping Act of 1984 (46 U.S.C. 40101-41309) (Shipping Act)

1. Whereas ___________________ (Name of Applicant [indicate whether NVOCC or Freight
Forwarder]) (hereinafter “Applicant”) is or may become an Ocean Transportation Intermediary
(“OTI”) subject to the Shipping Act of 1984 (46 U.S.C. 40101-41309) and the rules and regulations
of the Federal Maritime Commission (FMC), or is or may become a group or association of OTIs,
and desires to establish its financial responsibility in accordance with section 19 of the Shipping
Act (46 U.S.C. 41107-41109), then, provided that the FMC shall have accepted, as sufficient for
that purpose, the Applicant's application, supported by evidence of a financial rating for the
Guarantor of Class V or higher under the Financial Size Categories of A.M. Best & Company or
equivalent from an acceptable international rating organization on such rating organization's
letterhead or designated form, or, in the case of Guaranty provided by Underwriters at Lloyd's,
documentation verifying membership in Lloyd's, or, in the case of surplus lines insurers,
documentation verifying inclusion on a current “white list” issued by the Non-Admitted Insurers'
Information Office of the National Association of Insurance Commissioners, the undersigned
Guarantor certifies that it has sufficient and acceptable assets located in the United States to cover
all damages arising from the transportation-related activities of the covered OTI as specified under
the Shipping Act.
2. Whereas, this Guaranty is written to ensure compliance by the Applicant with section 19 of the
Shipping Act (46 U.S.C. 40901-40904), and the rules and regulations of the Federal Maritime
Commission relating to evidence of financial responsibility for OTIs (46 CFR part 515), this
guaranty shall be available to pay any judgment obtained or any settlement made pursuant to a
claim under 46 CFR 515.23 for damages against the Applicant arising from the Applicant's
transportation-related activities under the Shipping Act, or order for reparations issued pursuant to
section 11 of the Shipping Act (46 U.S.C. 41301-41302, 41305-41307(a)), or any penalty assessed
against the Applicant pursuant to section 13 of the Shipping Act (46 U.S.C. 41107-41109).
3. Now, Therefore, The condition of this obligation is that the penalty amount of this Guaranty
shall be available to pay any judgment obtained or any settlement made pursuant to a claim under
46 CFR 515.23 for damages against the Applicant arising from the Applicant's transportationrelated activities or order for reparations issued pursuant to section 11 of the Shipping Act (46
U.S.C. 41301-41302, 41305-41307(a)), or any penalty assessed against the Principal pursuant to
section 13 of the Shipping Act (46 U.S.C. 41107-41109).

4. The undersigned Guarantor hereby consents to be sued directly in respect of any bona fide claim
owed by Applicant for damages, reparations or penalties arising from Applicant's transportationrelated activities under the Shipping Act, in the event that such legal liability has not been
discharged by the Applicant after any such claimant has obtained a final judgment (after appeal, if
any) against the Applicant 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, the FMC, 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 Applicant and/or Guarantor pursuant to 46 CFR
515.23, whereby, upon payment of the agreed sum, the Guarantor is to be fully, irrevocably and
unconditionally discharged from all further liability to such claimant. In the case of a guaranty
covering the liability of a group or association of OTIs, Guarantor's obligation extends only to
such damages, reparations or penalties described herein as are not covered by another insurance
policy, guaranty or surety bond held by the OTI(s) against which a claim or final judgment has
been brought.
5. The Guarantor's liability under this Guaranty in respect to any claimant shall not exceed the
amount of the guaranty; and the aggregate amount of the Guarantor's liability under this Guaranty
shall not exceed the amount per OTI set forth in 46 CFR 515.21, or the amount per group or
association of OTIs set forth in 46 CFR 515.21 in aggregate.
6. The Guarantor's liability under this Guaranty shall attach only in respect of such activities giving
rise to a cause of action against the Applicant, in respect of any of its transportation-related
activities under the Shipping Act, occurring after the Guaranty has become effective, and before
the expiration date of this Guaranty, which shall be the date thirty (30) days after the date of receipt
of mail or email ([email protected]) written notice to the Director, Bureau of Certification and
Licensing, Federal Maritime Commission, Washington, DC. 20573, that either Applicant or the
Guarantor has elected to terminate this Guaranty. The Guarantor and/or Applicant specifically
agree to file such written notice of cancellation.
7. Guarantor shall not be liable for payments of any of the damages, reparations or penalties
hereinbefore described which arise as the result of any transportation-related activities of
Applicant after the cancellation of the Guaranty, as herein provided, but such cancellation shall
not affect the liability of the Guarantor for the payment of any such damages, reparations or
penalties prior to the date such cancellation becomes effective.
8. Guarantor shall pay, subject to the limit of the amount per OTI set forth in 46 CFR 515.21,
directly to a claimant any sum or sums which Guarantor, in good faith, determines that the
Applicant has failed to pay and would be held legally liable by reason of Applicant's transportationrelated activities, or its legal responsibilities under the Shipping Act and the rules and regulations
of the FMC, made by Applicant while this agreement is in effect, regardless of the financial
responsibility or lack thereof, or the solvency or bankruptcy, of Applicant.
9. The Applicant or Guarantor will promptly notify the Director, Bureau of Certification and
Licensing, Federal Maritime Commission, Washington, DC. 20573, in writing by mail or email

([email protected]), of all claims made, lawsuits filed, judgments rendered, and payments made under
the Guaranty.
10. Applicant and Guarantor agree to handle the processing and adjudication of claims by
claimants under the Guaranty established herein in the United States, unless by mutual consent of
all parties and claimants another country is agreed upon. Guarantor agrees to appoint an agent for
service of process in the United States.
11. This Guaranty shall be governed by the laws in the State of ___________ to the extent not
inconsistent with the rules and regulations of the FMC.
12. This Guaranty is effective the day of ____________ ,_____ 12:01 a.m., standard time at the
address of the Guarantor as stated herein and shall continue in force until terminated as herein
provided.
13. The Guarantor hereby designates as the Guarantor's legal agent for service of process domiciled
in the United States __________, with offices located in the United States at __________ , for the
purposes of enforcing the Guaranty described herein.
___________________________________________
(Place and Date of Execution)
___________________________________________
(Type Name of Guarantor)
___________________________________________
(Type Address of Guarantor)
___________________________________________
By
___________________________________________
(Signature and Title)

Form FMC 68
(Rev. 12/2015)