Code of Federal Regulations (Last Updated: November 8, 2024) |
Title 14 - Aeronautics and Space |
Chapter II - Office of the Secretary, Department of Transportation (Aviation Proceedings) |
SubChapter A - Economic Regulations |
Part 207 - Charter Trips by U.S. Scheduled Air Carriers |
Subpart E - Direct Sales by Air Carriers |
Appendix A to Part 207 - Route Air Carrier's Surety Bond Under Part 207 of the Economic Regulations of the Civil Aeronautics Board (14 CFR Part 207)
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Know all men by these presents, that we ——————(Name of route air carrier) of ——————(City), ——————(State) as PRINCIPAL (hereinafter called Principal), and ——————(Name of Surety) a corporation created and existing under the laws of the State of ——————(State) as SURETY (hereinafter called Surety) are held and firmly bound unto the United States of America in an unlimited sum, as required by § 207.17(c) of part 207, for which payment, well and truly to be made, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
Whereas, the Principal, a route air carrier holding a certificate of public convenience and necessity issued under section 401(d)(1) of the Federal Aviation Act, is subject to rules and regulations of the Board relating to security for the protection of charterers of civil aircraft and has elected to file with the Civil Aeronautics Board such a bond as will guarantee to the United States Government the performance of all charter trips (other than cargo charter trips) originating in the United States and of all overseas military personnel charter trips, as defined in part 372 of the Board's regulations, to be performed, in whole or in part, by such carrier pursuant to contracts entered into by such carrier after the execution date of this bond; and
Whereas, this bond is written to assure compliance by the Principal with rules and regulations of the Board relating to security for the protection of charterers of civil aircraft for charter trips (other than cargo charter trips) originating in the United States or of overseas military personnel charters, and shall inure to the benefit of
any and all such charterers to whom the Principal may be held legally liable for any of the damages herein described. Now, therefore, the condition of this obligation is such that if the Principal shall pay or cause to be paid to such charterers any sum or sums for which the Principal may be held legally liable by reason of the Principal's failure faithfully to perform, fulfill, and carry out all contracts made by the Principal while this bond is in effect for the performance of charter trips (other than cargo charter trips) originating in the United States and of overseas military personnel charter trips, than this obligation shall be void, otherwise to remain in full force and effect.
The liability of the Surety with respect to any charterer shall not exceed the total cost to such charterer for air transportation services in accordance with his contract with the Principal.
The liability of the Surety shall not be discharged by any payment or succession of payments hereunder in any specified amount. The Surety agrees to furnish written notice to the Civil Aeronautics Board forthwith of all suits filed, judgments rendered, and payments made by said Surety under this bond.
This bond is effective the —— day of ————, 19——, 12:01 a.m., standard time at the address of the Principal as stated herein and shall continue in force until terminated as hereinafter provided. The Principal or the Surety may at any time terminate this bond by written notice to the Civil Aeronautics Board at its office in Washington, D.C., such termination to become effective thirty (30) days after actual receipt of said notice by the Board. The Surety shall not be liable thereunder for the payment of any damages hereinbefore described which arise as the result of any contracts for the performance of air transportation services made by the Principal after the termination of this bond becomes effective, as herein provided, but said termination shall not affect the liability of the Surety hereunder for the payment of such damages arising as the result of contracts for the performance of air transportation services made by the Principal prior to the date such termination becomes effective. Liability of the Surety under this bond shall in all events be limited only to a charterer who shall within sixty (60) days after the cancellation of a charter trip with respect to which the charterer's advance payments are secured by this bond give written notice of the claim to the route air carrier, or, if he is unavailable, to the Surety, and all liability on the bond for such charter trip shall automatically terminate sixty (60) days after the cancellation date thereof except for claims filed within the time provided herein.
In witness whereof, the said Principal and Surety have executed this instrument on the —— day of ————, 19——.
PRINCIPALSURETY
Name—————— Name——————(SEAL) By———————— By———————— (Signature and Title)(Signature and Title) Witness—————-— Witness——————— Only corporations may qualify to act as surety and they must meet the requirements set forth in § 207.17(d) of part 207.