[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR298.38]

[Page 258-259]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)
 
PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER OPERATIONS--Table of Contents
 
   Subpart D--Limitations and Conditions on Exemptions and Operations
 
Sec. 298.38  Security arrangements for operating Public Charters.

    When an air taxi operator or commuter air carrier performs a Public 
Charter under part 380 of this chapter, either:
    (a) The air taxi operator or commuter air carrier shall meet the 
bonding or escrow requirements applicable to certificated carriers as 
set forth in Sec. 207.17 of this chapter; or
    (b) The air taxi operator or commuter air carrier shall ensure that 
it does not receive any payments for the charter until after the charter 
has been completed. In this case, its contracts with the charter 
operator and the charter operator's depository bank, if any, shall state 
that the charter operator or bank, as applicable, shall retain control 
of and responsibility for all participant funds intended for payment for

[[Page 259]]

air transportation until after the charter has been completed, 
notwithstanding any provision of part 380.

[ER-1140, 44 FR 49444, Aug. 23, 1979, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992]

Subpart E  [Reserved]