Elements of a valid charter may include: (1) The charterer must have the ability to select the crew, although the owner may require general skills for the crew, which will be maintained on the basis of federal laws; (2) The master/crew shall be paid by the charterer; (3) All food, fuel and supplies shall be provided by the charterer; (4) The insurance is taken out by the charterer, at least to the extent that liability as carriage of “rental passengers” is not included in the owner`s insurance; (5) The charterer shall be responsible for the safe navigation of the ship; 6) Used as a platform for events, even if they are anchored at the pier, and; 7) The ship will be inspected upon delivery and return. Pleasure craft: a vessel that (A) is manufactured or operated primarily for pleasure or (B) rented, leased or chartered to another for whose pleasure. Charter operation: A valid charter is an agreement in which the charterer uses the vessel for a certain period of time and is considered the owner. The charterer may assume legal obligations towards the owner, crew, passengers carried and others. Passenger: means a person carried on board a ship, with the exception of: (1) The owner or an individual representative of the owner or, in the case of a chartered ship, an individual charterer or an individual representative of the charterer. (2) The Master; or (3) A crew member who carries on the activities of the ship who has not provided any consideration for the carriage and who is paid for the services on board. Small passenger ship: a ship of less than 100 gross tonnage measured in accordance with Section 14502 of Section 46 USC or of an alternative tonnage measured in accordance with Section 14302 of this Title, as prescribed by the Secretary pursuant to Section 14104 of this Title, (A) carries more than six passengers, including at least one passenger for hire; (B) chartered with a crew provided or designated by the owner or his representative and carrying more than six passengers; (C) that are chartered without a crew provided or designated by the owner`s representative and that carry more than 12 passengers; (d) it is a submersible or winged vehicle, irrespective of its tonnage, for which at least one passenger is available for hire; or (E) it is a ferry carrying more than six passengers. Rental Passenger: means a passenger for whom consideration is provided as a condition of carriage on the ship, whether paid directly or indirectly to the owner, charterer, operator, agent or any other person having an interest in the ship. These general guidelines are not intended to be exhaustive or to serve as legal advice. To determine if your master`s licence is sufficient to operate in certain circumstances, read 46 CFR Part 11, Subpart D, NVIC N7-94, the Passenger Ship Safety Act, 1993, the resources found at www.uscg.mil/nmc, or consult a marine lawyer. Consideration: means an economic benefit, incentive, right or profit, including a financial payment made to a person, person or entity, but excluding a voluntary sharing of the actual cost of travel through a monetary contribution or a donation of food, fuel, beverages or other supplies. .
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