ownership and voting interest is vested in citizens of the United States, none is:

(1) The subject of any trust or fiduciary obligation in favor of any person not a citizen of the United States; or

(ii) Subject to a contract or understanding or other arrangement whereby the voting powers may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or

(iii) By any other means whatsoever, subject to control by any person who is not a citizen of the United States.

(3) If it is not possible to comply with the foregoing the facts should be fully disclosed and special instructions obtained.

(4) Annual filing of data to evidence continuing United States citizenship is required. Mortgagors under mortgages insured pursuant to Title XI, Merchant Marine Act, 1936, as amended, are required to file such data in accordance with the terms of the mortgage.

(5) Lenders and/or mortgagees as participants in Title XI (1936 Act) transactions are required, under the mortgage documents executed, to file evidence of continuing United States citizenship.

(6) Nominee stockholders (partnership or corporate) and said lenders and/or mortgagees may obtain form of proof to be submitted from the Office of General Counsel, Maritime Administration.

[G.O. 89, 25 F.R. 5293, June 14, 1960, as amended by G.O. 89, Amdt. 1, 30 F.R. 5901, Apr. 28, 1965]

§ 355.3 Form of affidavit.

The following form of affidavit is prescribed for execution in establishing the United States citizenship of corporations applying for benefits under the Merchant Marine Act, 1936, as amended:

AFFIDAVIT OF UNITED STATES CITIZENSHIP
State of
County of

I,

say:

.:

-----, being duly sworn, depose and

That I am the (Title of office or offices held) of (Name of corporation), a corporation organized and existing under and by virtue of the laws of the State (or Commonwealth) of and that I

am authorized to execute this affidavit concerning the United States citizenship of said (Name of corporation), an applicant for (Type of benefit applied for), pursuant to the provisions of section or sections (Desig

nate by number) of the Merchant Marine Act, 1936, as amended;

That the information hereinafter set forth in this affidavit is given for the purpose of establishing the United States citizenship of sald (Name of corporation) and is made and submitted as a part of the application for (Type of benefit applied for) as aforesaid;

That (Name of corporation) is a corporation organized and existing under and by virtue of the laws of the State (or Commonwealth) of with its principal

executive office and place of business located at (Number, Street, City, and State), and that, as proof of its incorporation under the laws of the State (or Commonwealth) of there are attached hereto a certified copy of the Certificate or Articles of Incorporation, together with certified copy of corporate By-Laws, and amendments, if any;

That the following persons are the President or other Chief Executive Officer, Vice Presidents or other individuals who are authorized to act in the absence or disability of the President or other Chief Executive Officer, Chairman of the Board of Directors and Directors of said (Name of corporation). the applicant:

Name; Office; Place and Date of Birth John Doe, President-Director, New York, N.Y., 1-18-1897.

Richard Roe, Secretary-Treasurer-Director, London, England, 3-12-1901.

(The foregoing list should include the officers, whether or not they are also directors, and all directors, whether or not they are also officers. In the case of corporations, other than those under Title VI of the Act, any alien directors should be named and followed by a statement that under the corporate By-laws------directors are necessary to constitute a quorum and that no more than a minority of the number of directors necessary to constitute a quorum are noncitizens.)

That John Doe is a citizen of the United States by virtue of his birth in the United States as shown in certified copy of birth certificate herewith (if a birth certificate is not available, give other acceptable proof as set forth in § 355.1(b); if passport data are given state the individual's full name and the number, date and place of issue of the passport; passports may be presented to the Office of General Counsel for sighting);

That Richard Roe is a citizen of the United States by virtue of his naturalization; give the Certificate of Naturalization number, date of issue and name and location of the court issuing said Certificate; naturalization certificates may be presented to the Office of General Counsel for sighting; the naturalized citizen should furnish an affidavit setting forth the places and dates of his residence since becoming a naturalized citizen;

(If different classes of stock exist, give the same data for each class issued and outstanding, showing the voting rights for each class.)

Explanatory note. To prove that the required interest (controlling interest for foreign trade, or, in the case of a corporation operating any vessel in the coastwise trade, on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States, 75% thereof) in applicant corporation is owned by citizens of the United States, applicant may select one of two methods. It may (a) establish the United States citizenship of individual owners of such required interest; or (b) if it must rely on more than 30 shareholders, show that, for majority interest, 65% or more (or for 75% interest, 95% or more) of the stock is owned by persons whose addresses are within the United States. Such a showing furnishes a basis from which a fair inference can be made (in the discretion of the Maritime Administrator) that the required ownership is in citizens of the United States.

If the applicant is relying on the citizenship of individual owners (natural persons, associations, partnerships, and corporations) of the required interest, the following statement should be included:

That, in order to establish that the controlling interest (or 75% or more) of the stock in sald corporation is owned by citizens of the United States, the applicant selects and relies upon the following owners:

(Here list the stockholders upon which applicant intends to rely, together with the number and class of shares of stock owned by each. A statement should be made at this point setting forth the facts upon which the citizenship of each owner is based; if an individual, attach to the affidavit the appropriate documentary evidence in the same manner as for the above-mentioned officers and directors; if a corporation, the same evidence is required to be furnished as that required for the applicant.)

If the applicant is relying on fair inference from residence within the United States of owners of 65% (or 95%) or more of its stock, the following should be included: That the registered addresses of holders of

shares of stock are shown as being within the United States, said shares of (class) being ------% of the total of shares of issued and outstanding stock (the same statement should be made as to each class of stock, if there is more than one class). Give name of and submit proof of United States citizenship for any holder

of 5% or more of the total number of shares issued and outstanding of each class, if more than one; proof of citizenship beyond the second tier of ownership (in the discretion of the Maritime Administrator) is not required unless such ownership is in a parent or major stockholder.

The following statement should conclude each affidavit of citizenship:

That the controlling interest (or 75% of the interest) in said corporation, as established by the data hereinbefore set forth, is owned by citizens of the United States; that the title to a majority (or 75%) of the stock in said corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; that such proportion of the voting power of said corporation is vested in citizens of the United States; that through no contract or understanding, is it so arranged that the majority (or more than 25%) of the voting power of said corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; and that, by no means whatsoever, is control of said corporation (or of any interest in said corporation in excess of 25%) 1 conferred upon or permitted to be exercised by any person who is not a citizen of the United States; and

(a) Transfers of marine equipment owned by the Maritime Administration will be made, upon request, only in cases of emergency under the following conditions:

(1) There must be a need which cannot be filled within a reasonable time by a manufacturer or other source;

(2) The transferee shall agree to stand all costs incurred in connection with the transfer;

(3) The transferee shall agree to take possession and custody of the equipment at a time and place designated by the Maritime Administration, and there shall be no liability on the part of the Maritime Administration for any failure of the equipment thereafter; and

(4) The equipment transferred shall be replaced by the transferee, at his expense, at the earliest practicable date and at a point designated by the Maritime Administration, with new equipment of the same type and design or with equipment determined by the Maritime Administration to be suitable for the same use as the equipment transferred, in a condition satisfactory to the Maritime Administration and in compliance with American Bureau of Shipping and U.S. Coast Guard standards.

(b) Transfers which meet the above requirements may be made (1) to operators of U.S.-flag merchant ships and shipyards for the construction or repair of U.S.-flag merchant ships, and (2) to foreign-flag merchant ships and U.S. shipyards for the construction or repair of foreign-flag merchant ships, when it is determined by the Maritime Adminis

tration, in consultation with other Government agencies, as appropriate, that the transfer would be beneficial to the American merchant marine, the defense effort, or otherwise in the national interest.

(c) The transferee shall furnish a deposit to the Maritime Administration in the amount of the current acquisition value (new) of the equipment, as determined by the Maritime Administration, plus 10 percent of such amount to cover expenses which may be incurred by the Maritime Administration in connection with the transaction, including possible damages to Maritime Administration properties, and, where applicable, an additional amount equal to the estimated cost of closing any openings or reassembling any machinery made necessary by the transfer. This deposit, less the amount of any expenses or damages incurred by the Maritime Administration in connection with the transfer, will be returned to the transferee upon satisfactory replacement of the equipment.

(d) The transferee shall pay to the Maritime Administration a service charge in the amount of $200 to cover administrative and operating expenses incurred in processing the transfer. This amount is to be deposited to the credit of the Government, and will not be returned to the transferee.

§ 360.4 Authorized transfer officials.

(a) No transfer of marine equipment shall be made to a foreign-flag ship or to a shipyard for the construction or repair of a foreign-flag ship without the express approval of the Maritime Administrator.

(b) The Maritime Administrator has delegated to the Chief, Office of Property and Supply, the authority to make transfers of marine equipment for the operation, construction and repair of U.S.flag ships, in accordance with the policy requirements of § 360.3. The Chief, Office of Property and Supply, has redelegated the above authority to the Chief, Division of Purchase and Sales, Office of Property and Supply.

(c) The Maritime Administrator has delegated the authority to the Coast Directors in the field, to transfer marine equipment under their cognizance for the operation, construction or repair of U.S.-flag ships, in accordance with policy requirements of § 360.3, when requests therefor originate in their District or are referred to them for action.

(a) Requests for the transfer of marine equipment shall be submitted, in writing, to the Chief, Division of Purchase and Sales, Maritime Administration, Washington, D.C., 20235, or to the appropriate Coast Director in the field, and shall include the following information:

(1) Name and address of organization requesting the transfer;

(2) Description of the equipment required;

(3) Time and method of replacement of equipment;

(4) Name, type, and flag of ship involved, port at which installation is to be made, and trade route and type of trade in which ship is engaged; and

(5) A detailed explanation of the need, establishing that an emergency exists and that the equipment cannot be obtained elsewhere in time for the ship to sail on schedule or to continue a voyage.

the transferee the amount of his deposit less such deductions as are determined by the Maritime Administration to be appropriate.

(b) Upon determination by the Maritime Administration that the justification for the transfer meets the policy requirements of $ 360.3 and that the equipment is available for transfer, the authorized transfer officia' shall obtain from the applicant, in writing, an agreement to the conditions of the transfer, including the conditions set forth in § 360.3 and such other conditions as may be appropriate, including the foregoing definition of the term "transfer." The Chief, Office of Property and Supply, shall submit proposals for the transfer of equipment for the operation, construction, or repair of foreign-flag ships to the Maritime Administrator for approval.

PART 365-OFFICIAL SEAL OF THE MARITIME ADMINISTRATION

Sec.

365.1 Purpose.

365.2 Maritime Administration Seal.

(c) The transferee shall transmit to the Maritime Administration, Washington, D.C., or the appropriate Coast Director a certified or cashier's check payable to "Maritime Adm.-Commerce" in the amount of the required deposit and the service charge, as determined under § 360.3 (c) and (d).

(d) Upon approval of the transfer, the authorized transfer official shall authorize the issuance of appropriate shipping and other necessary instructions for the transfer of the equipment to the ship operator or shipyard.

(e) Upon determination that the equipment transferred has been satisfactorily replaced and all conditions of the transfer have been complied with, the Maritime Administration will refund to

ADMINISTRA

(1) A shield argent paly of six gules, a chief azure charged with a fouled anchor or; shield and anchor outlined of the third and surmounted by an eagle displayed with wings inverted proper; all on a gold disc edged blue within a white border, encircled by a gold rope outlined in blue, and bearing the inscription "Maritime Administration Department of Commerce 1950" in blue letters, the words "Administration" and "Department" separated by a blue five pointed star.

(2) The shield and eagle perched on it are associated with the United States of

370.5 Claims under operating-differential subsidy contracts.

370.6 Claims under General Agency Agreements.

AUTHORITY: The provisions of this Subpart A issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114.

SOURCE: The provisions of this Subpart A appear at 23 F.R. 3578, May 23, 1958, unless otherwise noted. Redesignated at 23 F.R. 5039, July 2, 1958.

§ 370.1 Definitions.

(a) The term "time-barred claim", as used herein, shall be deemed to be a claim against the Government, with respect to which the statutory period for filing suit has expired.

(b) The term "contract", as used herein, shall be deemed to include, without limitation, a charter agreement or charter.

§ 370.2 Future claims.

Claims presented to the Maritime Administration after July 1, 1958, shall be rejected if the statutory period for filing suit on the claim has expired, except as follows:

(a) In cases where the Government has an affirmative claim against a party who has a claim against the Government arising out of the same contract or transaction, and his claim is of such a nature that it could be successfully asserted in court as a counterclaim or set-off, despite the fact that the statutory period for filing suit has expired, the cross claim may be honored in connection with an over-all settlement where such action

will result in a net payment to the Government.

(b) Claims in favor of friendly foreign governments shall not be disallowed solely because they are time-barred. I any such government should adopt the practice of asserting the statute of limitations as a defense against claims of the United States, the claims of that government against the United States will not be honored if they are timebarred.

§ 370.3 Pending claims.

(a) No claims (whether time-barred or not) shall be paid where there is a suit pending which arose out of the same contract or transaction.

(b) No time-barred claim shall be paid which arose out of a contract for the sale of vessels pursuant to the Merchant Ship Sales Act of 1946, as amended, including exchanges of vessels under section 8 of that act, and contracts covering the adjustment of prior sales under section 9 thereof.

(c) Even though the statutory period has expired, claims heretofore filed with the Maritime Administration or which are filed before July 1, 1958, may be considered on their merits, if they are not stale under general principles of equity, where the claimant establishes that his failure to file a timely action in court resulted from his belief that the Maritime Administration, under its former policy, would not assert the defense of time-bar.

(a) A time-barred claim will not be paid, which has been submitted and finally rejected before the expiration of the statutory period.

(b) A time-barred claim will not be paid unless the claimant furnishes to the Maritime Administration a release from any and all claims arising out of the same contract or transaction, including, in the case of fleet charters, a release from all claims as to all ships thereunder. Thus, such claims shall not be settled or paid on an individual basis.

(c) In cases where there is any question as to whether the claim is timebarred, the claim will be referred to the Office of the General Counsel of the Maritime Administration for a written opinion thereon before the claim is processed.

[23 F.R. 3578, May 23, 1958, as amended by Amdt. 1, 24 F.R. 2681, Apr. 8, 1959]