19-42-9

HAWAII ADMINISTRATIVE RULES
TITLE 19
DEPARTMENT OF TRANSPORTATION
CHAPTER 42
VESSEL AND HARBOR CONTROLS
SUBCHAPTER 1
GENERAL PROVISIONS
§19-42-9 Deposit required to guarantee payment for charges incurred by vessels.
Any agent, charterer, master, operator, or owner who proposes to enter a vessel,
other than a small craft, within the jurisdiction of a state port and utilize any of the
facilities of the department shall deposit in cash or other legal tender, funds in an
amount as determined by the cognizant district manager as being sufficient to
guarantee the payment of any and all bills for normal charges incurred by, for, or
on behalf of such vessel or its cargo for a period of ninety days. This deposit will
not be required for those agents, charterers, masters, operators, or owners who are
placed on the harbors division approved credit list following submission of a
written application in which they agree to:
(1) Ensure payment of any and all bills for normal charges incurred by, for, or on
behalf of such vessel or its cargo (for agents, only during the period while so
engaged as the vessel's agent);
(2) Provide a bond or irrevocable letter of credit from a bank doing business in
Hawaii equivalent to the amount of expected charges to be incurred within a
ninety-day period. This requirement is waived for those who have maintained a
satisfactory payment record with the State for the immediate preceding two-year
period; and
(3) Pay interest at the rate of one per cent per month and a delinquent account
service charge on payments which are delinquent in accordance with section 19-
44-6. In this regard the following is applicable:
(A) Any invoice unpaid for a period of thirty calendar days from the date of
invoice is delinquent.
(B) Wharfage is delinquent forty-five days after date of completion of handling
cargo over state wharves for the particular voyage.
(C) Wharfage reports which are submitted on a monthly basis, in accordance with
section 19-44-61(c), are delinquent fifteen days after the last day of the month
being reported.
(D) Demurrage charges collected and to be remitted in accordance with section
19-44-84 will become delinquent thirty days after the close of the month during
which such demurrage was collected. The department shall strike from the credit
list those agents, charterers, masters or owners who become delinquent for three
successive months except in cases where a bona fide dispute is being negotiated.
Any person registered with the department as a boat owner is held accountable for
any acts of commission or omission involving that boat owner's small craft and
for the prompt payment in full of all fees and charges due the State. [Eff 5/20/82;
am 12/20/85; am 11/7/91; am and comp 2/26/96] (Auth: HRS §§266-2, 266-3)
(Imp: HRS §§266-2, 266-3)