94-27087. Financial Responsibility Requirements for Nonperformance of Transportation; Inquiry Into Alternative Forms of Financial Responsibility for Nonperformance of Transportation

[Federal Register Volume 59, Number 211 (Wednesday, November 2, 1994)]
[Proposed Rules]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27087]


[[Page Unknown]]

[Federal Register: November 2, 1994]


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FEDERAL MARITIME COMMISSION

46 CFR Part 540

[Docket No. 94-06; Docket No. 94-21 ]

 

Financial Responsibility Requirements for Nonperformance of 
Transportation; Inquiry Into Alternative Forms of Financial 
Responsibility for Nonperformance of Transportation

AGENCY: Federal Maritime Commission.

ACTION: Clarification.

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SUMMARY: The language of the Notice of Inquiry published in this matter 
is revised to clarify that we are seeking comment on accepting, as 
evidence of financial responsibility, liens, mortgages or other 
security instruments.

DATES: Comments due on or before November 28, 1994.

ADDRESSES: Send comments (original and 20 copies) to: Joseph C. 
Polking, Secretary, Federal Maritime Commission, 800 North Capitol St., 
NW., Washington, DC 20573-0001, [phone].

FOR FURTHER INFORMATION CONTACT:
Bryant L. VanBrakle, Director, Bureau of Tariffs, Certification and 
Licensing, Federal Maritime Commission, 800 North Capitol St., NW., 
Washington, DC 20573-0001, [phone].

SUPPLEMENTARY INFORMATION: The Federal Maritime Commission 
(``Commission'' or ``FMC'') published a Notice of Inquiry into 
alternative forms of financial responsibility for nonperformance of 
transportation in the October 14, 1994 Federal Register (59 FR 52133). 
Subsequent review after publication disclosed that the Notice of 
Inquiry failed to include language to make clear that we are seeking 
comment on accepting, as evidence of financial responsibility, liens, 
mortgages or other security instruments. Accordingly, the Notice is 
being revised in the following respects:

    1. The second sentence of Part B (``Reinforced Self-Insurance'') is 
revised to read:

    The Commission is concerned that its present self-insurance 
standards may be inadequate, but it will consider an approach 
whereby it would restore its former ((net worth = 100% UPR) + 
(working capital = 100% UPR)) standard,\17\ but require prospective 
self-insurers to provide alternative coverage for a percentage 
(e.g., 50% or 25%) of their uncovered UPR, through either a 
traditional guaranty, surety, escrow agreement, lien or mortgage or 
other security instrument, or through participation in a coverage 
association along the above-described lines.

    2. The last sentence of Part C (``Coverage Requirements'') is 
revised to read as follows:

    We also solicit comments on liens or mortgages or any other form 
of security or proposal that would provide adequate coverage for the 
travelling public.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-27087 Filed 11-1-94; 8:45 am]
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