14 CFR § 298.38 - Financial security arrangements for operating Public Charters.
---
identifier: "/us/cfr/t14/s298.38"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "14 CFR § 298.38 - Financial security arrangements for operating Public Charters."
title_number: 14
title_name: "Aeronautics and Space"
section_number: "298.38"
section_name: "Financial security arrangements for operating Public Charters."
chapter_name: "OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION (AVIATION PROCEEDINGS)"
subchapter_number: "A"
subchapter_name: "ECONOMIC REGULATIONS"
part_number: "298"
part_name: "EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER OPERATIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "49 U.S.C. 329 and chapters 401, 411, and 417."
regulatory_source: "ER-929, 40 FR 42855, Sept. 17, 1975, unless otherwise noted."
cfr_part: "298"
---
# 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 § 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.