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e) As provided in section 1602(b) of this Act, tolls shall not be escribed at rates calculated to cover payments to the Republic of nama pursuant to paragraph 4(c) of Article XIII of the Panama .nal Treaty of 1977. Moreover, no payments may be made to the public of Panama under paragraph 4(c) of Article XIII of the nama Canal Treaty of 1977 unless unexpended funds are used

pay all costs of operation and maintenance of the canal, includšbut not limited to (1) operating expenses determined in accord·ce with generally accepted accounting principles, (2) payments to

Republic of Panama under paragraphs 4(a) and 4(b) of such Arle XIII and under paragraph (5) of Article III of such Treaty, (3) naounts in excess of depreciation and amortization which are pro.ammed for plant replacement, expansion, and improvements, (4) yments to the Treasury of the United States under section 1603 this Act, (5) reimbursement to the Treasury of the United States of costs incurred by other departments and agencies of the United

ates in providing educational, health, and other services to the ommission, its employees and their dependents, and other cat

ories of persons in accordance with section 1321 of this Act, (6) ny costs of Treaty implementation associated with the mainte

ance and operation of the Panama Canal, and (7) amounts prorammed to meet working capital requirements.82

(f) The prohibitions contained in this section and in sections * 302(c) and 1503 of this Act shall apply notwithstanding any other rovisions of law authorizing transfers of funds between accounts,

programming of funds, use of funds for contingency purposes, or waivers of prohibitions.

(g) 83 Notwithstanding any other provision of law, no reduction nder any order issued pursuant to the Balanced Budget and mergency Deficit Control Act of 1985 shall apply to the Commision if the implementation of such an order would result in a paynent to the Republic of Panama under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977 and this section.

TRANSACTIONS WITH THE REPUBLIC OF PANAMA Sec. 1342.84 The Commission may, on a reimbursable basis, provide to the Republic of Panama materials, supplies, equipment, work, or services, including water and electric power, requested by the Republic of Panama, at such rates as may be agreed upon by the Commission and the Republic of Panama. Payment for such materials, supplies, equipment, work, or services may be made by direct payment by the Republic of Panama to the Commission or by offset against amounts due the Republic of Panama by the United States.

DISASTER RELIEF SEC. 1343.85 If an emergency arises because of disaster or calamity by flood, hurricane, earthquake, fire, pestilence, or like cause, not foreseen or otherwise provided for, and occurring in the Repub

& Sec. 5426 of Public Law 100-203 (101 Stat. 1330-274) added clause (7).
83 Sec. 6 of Public Law 99-368 (100 Stat. 776) added subsec. (g).
B422 U.S.C. 3752.
85 22 U.S.C. 3753.

injuries to any protrusion beyond any portion of the hull of a vessel, whether it is permanent or temporary in character. A vessel is considered to be passing through the locks of the Canal, under the control of officers or employees of the United States, from the time the first towing line is made fast on board before entrance into the locks and until the towing lines are cast off upon, or immediately prior to, departure from the lock chamber. No payment for damages on a claim may be made under this section unless the claim is filed with the commission within 2 years after the date of the injury, or within 1 year after the date of the enactment of the Panama Canal Amendments Act of 1985, whichever is later.93

(b) 94 (1) With respect to a claim under subsection (a) for damages for injuries to a vessel or its cargo, if, at the time the injuries were incurred, the navigation or movement of the vessel was not under the control of a Panama Canal pilot, the Commission may pay not more than $50,000 on the claim,95 unless the injuries were caused by another vessel under the control of a Panama Canal pilot.

(2) The provisions of subsections (c) through (e) of section 1401 of this Act shall apply to any claim described in paragraph (1).

INJURIES OUTSIDE LOCKS SEC. 1412.96 The Commission shall promptly adjust and pay damages for injuries to vessels, or to the cargo, crew, or passengers of vessels which may arise by reason of their presence in the Panama Canal, or waters adjacent thereto, other than the locks, when the injury was proximately caused by negligence or fault on the part of an officer or employee of the United States acting within the scope of his employment and in the line of his duties in connection with the operation of the Canal.97 No payment for damages on a claim may be made under this section unless the claim is filed with the Commission within 2 years after the date of the injury, or within 1 year after the date of the enactment of the Panama Canal Amendments Act of 1985, whichever is later.98 If the neg. ligence or fault of the vessel, master, crew, or passengers proximately contributed to the injury, the award of damages shall be diminished in proportion to the negligence or fault attributable to the vessel, master, crew, or passengers. In the case of a vessel which is required by or pursuant to regulations prescribed pursuant to section 1801 of this Act to have a Panama Canal pilot on duty aboard, damages may not be adjusted and paid for injuries to the vessel, or its cargo, crew, or passengers, incurred while the vessel was underway and in motion, unless at the time the injuries were incurred the navigation or movement of the vessel was under the control of a Panama Canal pilot.

93 This sentence was added by sec. 2(a) of Public Law 99-209 (99 Stat. 1716.) 84 Subsec. (b) was added by sec. 2(b) of Public Law 99-209 (99 Stat. 1716).

96 The words "pay not more than $50,000 on the claim" were substituted in lieu of "adjust and pay the claim only if the amount of the claim does not exceed $50,000" by sec. 5417(b) of Public Law 100-203 (101 Stat. 1330-271).

86 22 U.S.C. 3772.

07 Sec. 2(cX1) of Public Law 99-209 (99 Stat. 1716) struck out ", and when the amount of the claim does not exceed $120,000" at this point.

Das This sentence was added by sec. 2(c2) of Public Law 99-209 (99 Stat. 1716).

CHAPTER 4—CLAIMS FOR INJURIES TO PERSONS OR PROPERTY

Subchapter 1-General Provisions

SETTLEMENT OF CLAIMS GENERALLY SEC. 1401.89 (a) Subject to the provisions of this chapter, the Commission may adjust and pay claims for injury to, or loss of, property or for personal injury or death, arising from the operation of the Panama Canal or related facilities and appurtenances.

(b) 90 The Commission may pay not more than $50,000 on any claim described in subsection (a).

(c) An award made to a claimant under this section shall be payable out of any moneys appropriated for or made available to the Commission. The acceptance by the claimant of the award shall be final and conclusive on the claimant, and shall constitute a complete release by the claimant of his claim against the United States and against any employee of the United States acting in the course of his employment who is involved in the matter giving rise to the claim.

(d) Except as provided in section 1416 of this Act, no action for damages on claims cognizable under this chapter shall be against the United States or the Commission, and no such action shall lie against any officer or employee of the United States. Neither this section nor section 1416 of this Act shall preclude actions against officers or employees of the United States for injuries resulting from their acts outside the scope of their employment or not in the line of their duties, or from their acts committed with the intent to injure the person or property of another.

(e) The provisions of section 1346(b) of title 28, United States Code, and the provisions of chapter 171 of such title shall not apply to claims cognizable under this chapter.

Subchapter II—Vessel Damage

INJURIES IN LOCKS OF CANAL SEC. 1411.91 (a) Subject to subsection (b) of this section, the Commission shall promptly adjust and pay damages for injuries to vessels, or to the cargo, crew, or passengers of vessels, which may arise by reason of their passage through the locks of the Panama Canal 92 when the injury was proximately caused by negligence or fault on the part of an officer or employee of the United States acting within the scope of his employment and in the line of his duties in connection with the operation of the Canal. If the negligence or fault of the vessel, master, crew, or passengers proximately contributed to the injury, the award of damages shall be diminished in proportion to the negligence to fault attributable to the vessel, master, crew, or passengers. Damages may not be allowed and paid for

88 22 U.S.C. 3761.

s0 Subsec. (b) was amended and restated by sec. 5417(a) of title V of the Omnibus Reconciliation Act of 1987 (Public Law 100-203; 101 Stat. 1330-271).

81 22 U.S.C. 3771.

82 The language from this point to the end of the sentence was added by sec. 2(a) of Public Law 99–209 (99 Stat. 1716). Sec. 2(a) also deleted a sentence previously appearing at this point which read: “Damages may not be paid where the injury was proximately caused by the negligence or fault of the vessel, master, crew, or passengers.".

ed to be por employee fast on be

injuries to any protrusion beyond any portion of the hull of a vessel, whether it is permanent or temporary in character. A vessel is considered to be passing through the locks of the Canal, under the control of officers or employees of the United States, from the time the first towing line is made fast on board before entrance into the locks and until the towing lines are cast off upon, or immediately prior to, departure from the lock chamber. No payment for damages on a claim may be made under this section unless the claim is filed with the commission within 2 years after the date of the injury, or within 1 year after the date of the enactment of the Panama Canal Amendments Act of 1985, whichever is later.93

(b) 94 (1) With respect to a claim under subsection (a) for damages for injuries to a vessel or its cargo, if, at the time the injuries were incurred, the navigation or movement of the vessel was not under the control of a Panama Canal pilot, the Commission may pay not more than $50,000 on the claim,95 unless the injuries were caused by another vessel under the control of a Panama Canal pilot.

(2) The provisions of subsections (c) through (e) of section 1401 of this Act shall apply to any claim described in paragraph (1).

INJURIES OUTSIDE LOCKS SEC. 1412.96 The Commission shall promptly adjust and pay damages for injuries to vessels, or to the cargo, crew, or passengers of vessels which may arise by reason of their presence in the Panama Canal, or waters adjacent thereto, other than the locks, when the injury was proximately caused by negligence or fault on the part of an officer or employee of the United States acting within the scope of his employment and in the line of his duties in connection with the operation of the Canal.97 No payment for damages on a claim may be made under this section unless the claim is filed with the Commission within 2 years after the date of the injury, or within 1 year after the date of the enactment of the Panama Canal Amendments Act of 1985, whichever is later.98 If the negligence or fault of the vessel, master, crew, or passengers proximately contributed to the injury, the award of damages shall be diminished in proportion to the negligence or fault attributable to the vessel, master, crew, or passengers. In the case of a vessel which is required by or pursuant to regulations prescribed pursuant to section 1801 of this Act to have a Panama Canal pilot on duty aboard, damages may not be adjusted and paid for injuries to the vessel, or its cargo, crew, or passengers, incurred while the vessel was underway and in motion, unless at the time the injuries were incurred the navigation or movement of the vessel was under the control of a Panama Canal pilot.

A3 This sentence was added by sec. 2(a) of Public Law 99-209 (99 Stat. 1716.) 94 Subsec. (b) was added by sec. 2(b) of Public Law 99-209 (99 Stat. 1716).

86 The words "pay not more than $50,000 on the claim" were substituted in lieu of "adjust and pay the claim only if the amount of the claim does not exceed $50,000" by sec. 5417(b) of Public Law 100-203 (101 Stat. 1330-271).

DG 22 U.S.C. 3772.

07 Sec. 2(cX1) of Public Law 99-209 (99 Stat. 1716) struck out“, and when the amount of the claim does not exceed $120.000" at this point.

96 This sentence was added by sec. 2(cX2) of Public Law 99-209 (99 Stat. 1716).

MEASURE OF DAMAGES GENERALLY SEC. 1413.99 In determining the amount of the award of damages for injuries to a vessel for which the Commission is determined to be liable there may be included

(1) the actual or estimated cost of repairs;

(2) charter hire actually lost by the owners, or charter hire actually paid, depending upon the terms of the charter party, for the time the vessel is undergoing repairs;

(3) maintenance of the vessel and wages of the crew, if they are found to be actual additional expenses or losses incurred outside of the charter hire; and

(4) other expenses which are definitely and accurately shown to have been incurred necessarily and by reason of the accident

or injuries. Agent's fees, or commissions, or other incidental expenses of similar character, or any items which are indefinite, indeterminable, speculative, or conjectural may not be allowed. The Commission shall be furnished such vouchers, receipts, or other evidence as may be necessary in support of any item of a claim. If a vessel is not operated under charter but by the owner directly, evidence shall be secured if available as to the sum for which vessels of the same size and class can be chartered in the market. If the charter value cannot be determined, the value of the vessel to its owners in the business in which it was engaged at the time of the injuries shall be used as a basis for estimating the damages for the vessel's detention; and the books of the owners showing the vessel's earnings about the time of the accident or injuries shall be considered as evidence of probable earnings during the time of detention. If the books are unavailable, such other evidence shall be furnished as may be necessary.

DELAYS FOR WHICH NO RESPONSIBILITY IS ASSUMED SEC. 1414.100 The Commission is not responsible, and may not consider any claim, for demurrage or delays caused by

(1) landslides or other natural causes;

(2) necessary construction or maintenance work of Canal locks, terminals, or equipment;

(3) obstruction arising from accidents;
(4) time necessary for admeasurement;
(5) congestion of traffic;

(6) 101 investigation of a marine accident that is conducted within 24 hours after the accident occurs, except that any liability of the Commission beyond that 24-hour period shall be limited to the extent to which the accident was caused, or contributed to, by the negligence of an employee of the Commission acting within the scope of the employee's official duties; or

(7) except as specially set forth in this subchapter, any other cause.

o 22 U.S.C. 3773. 100 22 U.S.C. 3774.

101 Subsec. 6 was comprehensively amended and restated by sec. 3 of Public Law 99-209 (99 Stat. 1717).

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