[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR298.38]



[Page 256]

 

                     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  Financial 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 air carriers 

as set forth in Sec. 212.8 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 

air transportation until after the charter has been completed, 

notwithstanding any provision of part 380 of this chapter.