(b) The application for the permit shall be in writing, verified, and shall set forth:

(1) the names and addresses of its officers;

(2) the location of its principal office;

(3) the name of its Canal Zone representative;

(4) an itemized account of its financial condition;

(5) the amount and character of its assets and liabilities;

(6) a detailed statement of the plan upon which it proposes to transact business;

(7) a copy of any prospectus or advertisement, or other description of the securities, then prepared by or for it, for distribution or publication; and

(8) additional information required by the Governor concerning the company, its condition, or affairs.

(c) If the applicant is a partnership, an unincorporated association, or joint stock company, it shall file with its application a copy of its articles of partnership or association, and all other papers pertaining to its organization.

(d) If the applicant is a corporation, it shall file with its application:

(1) a copy of all minutes of proceedings of its directors, stockholders, or members relating to or affecting the issue of the securities;

(2) a copy of its articles of incorporation and bylaws, and amendments thereto; and

(3) a certificate, dated not more than 60 days before the filing of the application, executed by the proper officer of the State or country in which the corporation is organized, showing that the applicant is authorized to transact business there.

81293. Process agent; service of process; surrender of permit (a) At the time of filing its application, a company shall file with the executive secretary of the Canal Zone Government a designation of a person residing within the Canal Zone upon whom process issued under a law of the Canal Zone may be served and his place of business or residence, and a certified copy of the minutes of the board of directors of the company authorizing the designation.

(b) Process may be served on the person designated by the company or, if he can not be found at the place designated, or if no person is designated, on the executive secretary of the Canal Zone Government, and it shall be a valid service on the company. When the executive secretary has been served with process he shall without delay communicate the same to the company concerned at its last known address. A default judgment may not be entered against the company in an action in which process is served on the executive secretary until at least 60 days after the date of the service.

(c) Sections 881 and 882 of this title apply to the surrender of the permit of a company issued pursuant to this chapter, and to service of process upon a company after revocation or surrender of its permit. § 1294. Examination of application; issuance and revocation of permit

(a) Upon the filing of an application, the Governor shall examine or cause to be examined the application and the papers and documents filed with it. He may make or cause to be made a detailed examination, audit and investigation of the applicant and its affairs.

(b) The Governor may issue to the applicant a permit authorizing it to issue and dispose of securities in the Canal Zone as therein provided, if he finds that:

(1) the proposed plan of business of the applicant is not unfair, unjust, inequitable, or contrary to the policy of administering the Canal Zone as an adjunct of the Panama Canal;

(2) the applicant intends to transact its business fairly and honestly; and

(3) the securities that the applicant proposes to issue and the methods to be used in issuing or disposing of them will not, in the Governor's opinion, work a fraud on the purchaser. Otherwise the Governor shall deny the application, refuse the permit, and notify the applicant in writing of his decision.

(c) Each permit shall expire on December 31 next following its issuance unless sooner revoked.

(d) Each permit shall recite that the issuance thereof is permissive only and not a recommendation or indorsement of the securities permitted to be sold.

(e) The Governor may impose the conditions he deems necessary to the issue of the securities. He may establish reasonable or necessary rules and regulations to insure the disposition of the proceeds of the securities in the manner and for the purposes provided in the permit. From time to time for cause, the Governor may amend or revoke a permit issued by him, or temporarily suspend the rights. of the applicant under the permit.

§ 1295. Certificate of agent or broker

(a) A person or company may not act as an agent or broker, other than for a company holding a permit pursuant to section 1294 of this title before securing from the Governor a certificate, then in effect, authorizing the person or company to do so. Each certificate expires on December 31 next following its issuance, unless sooner revoked. (b) To secure the certificate, the applicant shall make and file in the office of the Governor an application in writing, verified by or in behalf of the applicant. The application shall set forth, in addition to other information that the Governor may require:

(1) the name and address of the applicant; and, if it is a corporation, association, or joint stock company, the name and address of each of its managing officers and agents; and, if it is a partnership, the name and address of each of the partners:

(2) a succinct statement of facts showing that the applicant, and its managing officers and agents, if it is a corporation, or members, if it is a partnership, have a good business reputation; and

(3) if the applicant is a broker, the general plan and character of the business.

(c) If the applicant is a corporation or association it shall file with its application a designation of a process agent, as provided by section 1293 of this title.

§ 1296. Issuance and revocation of broker's or agent's certificate (a) The Governor shall examine or cause to be examined the application for a broker's or agent's certificate and shall make any further investigation that he deems advisable of the applicant or its affairs.

(b) The Governor may issue the certificate only if he is satisfied from his examination that:

(1) the business reputation of the applicant and of its officers and members, if any, is good; and

(2) the conduct of the business will not conflict with the policy of administering the Canal Zone as an adjunct of the Panama Canal.

If the Governor denies the application and refuses the certificate, he shall notify the applicant of his decision.

(c) The Governor at any time may revoke a broker's or agent's certificate issued by him if he finds that:

(1) the conduct of the business conflicts with the policy of administering the Canal Zone as an adjunct of the Panama Canal;

or

(2) the holder of the certificate:

(A) is of bad business repute;

(B) has violated a provision of this chapter; or

(C) has engaged, or is about to engage, in any fraudulent transaction.

§ 1297. Report on sale of securities

A company or broker authorized under this chapter to sell securities shall, at the times required by the executive secretary and in the form prescribed by him, make and file in the office of the executive secretary a report setting forth:

(1) the securities sold under the authority of a permit issued by the Governor;

(2) the proceeds derived from the securities;

(3) the disposition of the proceeds; and

(4) other information required by the executive secretary concerning its property, officers, or affairs, relating to or affecting the value of the securities.

§ 1298. Fees

With its application for a permit or certificate, a company or broker shall remit $10, which shall cover the filing fee and the annual license fee for the remainder of the calendar year during which the permit or certificate is issued. No part of the fee may be returned if the application is disapproved.

The annual fee for renewal of a permit or certificate issued under this chapter is $10, payable in advance on or before January 1 of each year.

§ 1299. Penalties for violation

(a) A company, agent, or broker, which directly or indirectly issues or causes to be issued, or solicits the sale of a security contrary to this chapter, shall be fined not more than $500.

(b) Whoever acts as an officer of, or agent for, a company, agent or broker, in the issuance, or solicitation for the sale, of a security contrary to this chapter, shall be fined not more than $100 or imprisoned in jail not more than 30 days, or both.

(c) In addition to the penalties provided for in this section, every contract made by or on behalf of such a company, agent, or broker affecting the liability thereof is void on its behalf and on behalf of its assigns, but enforceable against it or them.

Sec.

CHAPTER 81-SHIPPING AND NAVIGATION

SUBCHAPTER I-GENERAL PROVISIONS

1331. Regulations governing navigation, transiting, pilotage, and licensing of officers; penalties for violation.

BUBCHAPTER II-INSPECTION OF VESSELS

1351. Vessels subject to inspection generally.

1352. Inspection of foreign vessels.

1353. Regulations governing inspection.

1354. Issuance and display of certificate of inspection.

1355. Refusal of certificate of inspection.

1356. Fines for failing to have or display certificate, or for receiving excess

passengers; recovery.

1357. Revocation of certificate for changes in conditions of vessel.

1358. Registration, etc., of small vessels propelled by machinery; licensing of operators; fine for violation.

1359. Registration and numbering of small vessels not propelled by machinery; fine for violation.

BUBCHAPTER III-SEAMEN

1381. Laws applicable to seamen of vessels of United States. 1382. Powers of shipping commissioner and deputies.

Subchapter I-General Provisions

§ 1331. Regulations governing navigation, transiting, pilotage, and licensing of officers; penalties for violation

The President may prescribe, and from time to time amend, regulations governing:

(1) the navigation of the harbors and other waters of the Canal Zone;

(2) the passage and control of vessels through the Panama Canal or any part thereof, including the locks and approaches thereto;

(3) pilotage in the Canal or the approaches thereto through the adjacent waters; and

(4) the licensing of officers or other operators of vessels navigating the waters of the Canal Zone.

Whoever violates a regulation issued pursuant to this section shall be fined not more than $100 or imprisoned in jail not more than 30 days, or both.

Subchapter II-Inspection of Vessels

§ 1351. Vessels subject to inspection generally

With the exception of private vessels merely transiting the Panama Canal, and of public vessels of all nations, vessels navigating the waters of the Canal Zone are subject to an annual inspection of hulls, boilers, machinery, equipment, and passenger accommodations.

§ 1352. Inspection of foreign vessels

A foreign vessel of a country which has inspection laws approximating those of the United States, having an unexpired certificate of inspection duly issued by the authorities of that country, is not subject to an inspection other than that necessary to determine whether the vessel, boilers and lifesaving equipment are as stated in the certificate of inspection. A certificate of inspection may not be accepted as evidence of lawful inspection unless like privileges are granted to vessels of the United States under the laws of the country to which the vessel belongs.

§ 1353. Regulations governing inspection

The Governor shall prescribe, and from time to time may amend, regulations concerning the inspection of vessels conforming as nearly as practicable to the laws and regulations governing marine inspection by the United States Coast Guard.

§ 1354. Issuance and display of certificate of inspection

When the board of local inspectors of the Canal Zone Government approves a vessel and its equipment, a certificate of inspection, in triplicate, shall be issued by the Canal Zone Government. Two copies of the certificate shall be displayed in conspicuous places in the vessel where they are most likely to be observed by passengers and others, and there kept at all times framed under glass.

§ 1355. Refusal of certificate of inspection

When the board of local inspectors does not approve a vessel or its equipment, a certificate of inspection shall be refused, and the board of local inspectors shall make a statement in writing giving the reason for refusal to approve, filing the statement in the records of the board, and giving a copy thereof to the owner, agent or master of the vessel.

§ 1356. Fines for failing to have or display certificate, or for receiving excess passengers; recovery

(a) A vessel, other than one excepted by section 1351 of this title, that navigates the waters of the Canal Zone without having an unexpired certificate of inspection issued by the Canal Zone Government or by the United States Coast Guard, or an unexpired certificate accepted by the Canal Zone Government pursuant to section 1352 of this title, shall be fined not more than $1,000.

(b) If a passenger is received on board a vessel not having certified copies of the certificate of inspection placed and kept as required by section 1354 of this title, or if passengers are received on board a vessel in excess of the number authorized by the certificate of inspection, the vessel shall be fined not more than $100 for each passenger so received.

(c) Fines may be recovered in the district court, and the amount so recovered shall be a lien upon the vessel, and it may be seized and sold to satisfy the lien, as well as the costs of the court proceedings. § 1357. Revocation of certificate for changes in conditions of vessel

If a vessel holding an unexpired certificate issued by the Canal Zone Government changes its condition as to hull, boilers, machinery, equipment or accommodations for passengers in such manner as not to conform to the regulations under which the certificate was issued, the board of local inspectors shall make an inspection and may recommend revocation of the certificate of inspection. Upon approval of the recommendation by the supervising inspector or such other person as the Governor designates, a notice of revocation shall be issued to the owner, agent or master of the vessel. After the notice of revocation the navigation of Canal Zone waters by the vessel shall subject it to the penalty prescribed by section 1356 of this title.

§ 1358. Registration, etc., of small vessels propelled by machinery; licensing of operators; fine for violation

Vessels not more than sixty-five feet in length, measuring from end to end over the deck excluding sheer, and propelled in whole or in part by machinery, shall be registered, certificated, and numbered, and shall display the numbers assigned in a conspicuous place in prescribed form. Such vessels are subject to annual inspection, and the cer