---
kind: "section"
citation: "46 U.S.C. § 40902"
title: "46"
title_heading: "Shipping"
number: "40902"
heading: "Financial responsibility"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/40902"
units:
  - "Subtitle IV — Regulation of Ocean Shipping"
  - "Part A — Ocean Shipping"
  - "Chapter 409 — Ocean Transportation Intermediaries"
---

# §40902. Financial responsibility

- (a) **In General.—** A person may not advertise, hold oneself out, or act as an [ocean transportation intermediary](/usc/46/40102.md?p=20) unless the person furnishes a bond, proof of insurance, or other surety—
  - (1) in a form and amount determined by the Federal Maritime [Commission](/usc/46/42501.md?p=1) to insure financial responsibility; and
  - (2) issued by a surety company found acceptable by the [Secretary](/usc/46/2101.md?p=46) of the Treasury.
- (b) **Scope of Financial Responsibility.—** A bond, insurance, or other surety obtained under this section—
  - (1) shall be available to pay any penalty assessed under [section 41109 of this title](/usc/46/41109.md) or any order for reparation issued under [section 41305 of this title](/usc/46/41305.md);
  - (2) may be available to pay any claim against an [ocean transportation intermediary](/usc/46/40102.md?p=20) arising from its transportation-related activities—
    - (A) with the consent of the insured [ocean transportation intermediary](/usc/46/40102.md?p=20) and subject to review by the surety company; or
    - (B) when the claim is deemed valid by the surety company after the [ocean transportation intermediary](/usc/46/40102.md?p=20) has failed to respond to adequate notice to address the validity of the claim; and
  - (3) shall be available to pay any judgment for damages against an [ocean transportation intermediary](/usc/46/40102.md?p=20) arising from its transportation-related activities, if the claimant has first attempted to resolve the claim under [paragraph (2)](#b-2) and the claim has not been resolved within a reasonable period of time.
- (c) **Regulations on Court Judgments.—** The [Commission](/usc/46/42501.md?p=1) shall prescribe regulations for the purpose of protecting the interests of claimants, [ocean transportation intermediaries](/usc/46/40102.md?p=20), and surety companies with respect to the process of pursuing claims against [ocean transportation intermediary](/usc/46/40102.md?p=20) bonds, insurance, or sureties through court judgments. The regulations shall provide that a judgment for monetary damages may not be enforced except to the extent that the damages claimed arise from the transportation-related activities of the insured [ocean transportation intermediary](/usc/46/40102.md?p=20), as defined by the [Commission](/usc/46/42501.md?p=1).
- (d) **Resident Agent.—** An [ocean transportation intermediary](/usc/46/40102.md?p=20) not domiciled in the United States shall designate a resident agent in the United States for receipt of service of judicial and administrative process, including subpoenas.

## Source credit

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1538; Pub. L. 115–282, title VII, § 707(c), Dec. 4, 2018, 132 Stat. 4295.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 40902 | 46 App.:1718(b). | Pub. L. 98–237, § 19(b), Mar. 20, 1984; added Pub. L. 105–258, title I, § 116(4), Oct. 14, 1998, 112 Stat. 1913. |

In subsection (b), in paragraphs (2) and (3), the words “described in section 1702(17) of this Appendix” are omitted as unnecessary.

### Editorial Notes

### Amendments

2018—Subsec. (a). Pub. L. 115–282 inserted “advertise, hold oneself out, or” after “may not” in introductory provisions.