Section 298.12 - Applicant and operator's qualifications(a)Operator's qualifications. We will not issue a Letter Commitment without a prior determination that you, the bareboat charterer, or other Person identified in the application as the operator of the Vessel(s) or Shipyard Project, possesses the necessary experience, ability and other qualifications to properly operate and maintain the Vessel(s) or Shipyard Project which serve as security for the Guarantees. You must also comply with all requirements of this part.(b)Identity and ownership of applicant. In order for us to assess the likelihood that the project will be successful, we need information about you and the proposed project. To permit this assessment, you must provide the following information in your application for Title XI guarantees: (1)Incorporated companies. If you or any bareboat charterer is an incorporated company, you must submit the following identifying information: (i) Name of company, place and date of incorporation, and tax identification number, or if appropriate, international identification number of the company;(ii) Address of principal place of business; and(iii) Certified copy of certificate of incorporation and bylaws.(2)Partnerships, limited partnerships, limited liability companies, joint ventures, associations, unincorporated companies. If you or any bareboat charterer is a partnership, limited partnership, limited liability company, joint venture, association, or unincorporated company, you must submit the following identifying information: (i) Name of entity, place and date of formation, and tax identification number, or if appropriate, international identification number of entity;(ii) Address of principal place of business; and(iii) Certified copy of certificate of formation, partnership agreement or other documentation forming the entity.(3)Other entities. For any entity that does not fit the descriptions in paragraphs (b)(1) and (b)(2) of this section, we will specify the information that the entity must submit regarding its identity and ownership.(4) You and any bareboat charterer must provide a brief statement of the general effect of each voting agreement, voting trust or other arrangement whereby the voting rights of any interest in you or the bareboat charterer are controlled or exercised by any person who is not the holder of legal title to such interest.(5) You and any bareboat charterer must provide the following information regarding the entity's officers, directors, partners or members: (ii) Office or position; and(iii) Nationality and interest owned (for example, shares owned and whether voting or non-voting).(c)Business and affiliations of applicants. You must include: (1) A brief description of your principal business activities during the past five years.(2) A list of all business entities that directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with you.(3) The nature of the business transacted by each listed entity and the relationship between these entities. This information may be presented in the form of a chart.(4) Whether any of the affiliated entities have previously applied for or received Title XI assistance.(5) A statement indicating whether the applicant, any predecessor or affiliated entity has been in bankruptcy or reorganization under any insolvency or reorganization proceeding and if so, give details.(6) A statement indicating whether the applicant or any predecessor or affiliated entity is now, or during the past five years has been, in default under any agreement or undertaking with others or with the United States of America, or is currently delinquent on any Federal debt, and if so, provide explanatory information.(7) A list of your banking references: (i) Principal bank(s) or lending institutions(s)-name and address;(ii) Nature of relationship; and(iii) Individual references-name(s), telephone and fax number of banking officer(s).(d)Management of applicant. You must include: (1) A brief description of the principal business activities during the past five years of each officer, director, partner or member you listed in paragraph (b)(5) of this section and if these persons (have) act(ed) as executive officers in other entities, indicate the names of these entities and whether such entities have defaulted on any U.S. Government debt, and(2) The name and address of each organization engaged in business activities which have a direct financial relationship to those carried on or to be carried on by you with which any person listed in paragraph (d)(1) of this section has any present business connection, the name of each such person and, briefly, the nature of such connection.(e)Applicant's property and activity. You must provide: (1) A brief description of the general character and location of the principal assets employed in your business and those of your affiliate, other than vessels. Describe financial encumbrances, if any;(2) A general description of the vessels currently owned and/or operated by you or your affiliates and a description of the areas of operation; and,(3) In the case of an Eligible Shipyard which is an applicant for a guarantee for a Shipyard Project, a brief description of the general character (that is, the number of building ways, launch method, drydocks and size) and location (that is, water depth, length of riverfront) of the principal properties of the applicant employed in its business. You must also describe any financial encumbrances.(f)Operating ability.(1) You must submit a detailed statement showing your ability to successfully operate the financed Vessel(s).(2) If a company other than you will operate the Vessel(s), then the information in paragraph (f)(1) of this section must be provided for the operating company together with a copy of the operating agreement.(3) You must submit a copy of any management agreement(s) between you and any related or unrelated organization(s) which will affect the management of the Title XI Vessel or shipyard.(4) In the case of an Eligible Shipyard, which is an applicant for a guarantee for a Shipyard Project, a detailed statement must be submitted showing your ability to successfully operate the Shipyard Project and construct/reconstruct Vessels, including name, education, background of, and licenses held by, all senior supervisory personnel concerned with the physical operation of the Shipyard Project.(5) Where an operator has an historical performance record, we will consider this record in evaluating your operating ability. For newly formed entities, we will evaluate the performance of affiliates and/or companies associated with the principals (where the principals have a significant degree of control) in determining your operating ability. However, unless the affiliates or principals have an obligation with respect to the debt, we will not consider historical performance in evaluating your creditworthiness.