June 14, 2001

NSCC ACTION LETTER 5-01

1. A number of units have acquired vehicles and boats through donations, and for tax purposes from individuals. It is mandatory that such vehicles be properly titled, registered and insured before they are operated for any purpose. Accordingly, units will comply with the following:

1. The vehicle/boat will be titles/registered in the name of the unit. Titling/registering in the name of an individual, or in the name of a regional individual is not permitted.
   
   
2. A general comprehensive liability policy will be obtained, with coverage for person injury and property damage liability, in the amount of $1,000,000. The policy is to be issued to the titled/registered owner (unit), with the "U.S. Naval Sea Cadet Corps and its affiliates" named as an additional insured. A copy of the policy will be forwarded to NHQ (see Para 1.c.)
   
   
3. All units and Regions will complete by 15 August 2001, and annually thereafter, the Vehicle/Boat Survey Form [enclosure (1)] and submit it to NHQ, along with a letter requesting permission to operate the vehicle/boat for Sea Cadet purposes if such property is owned. Vehicles/boats owned by units will not be operated until such authorization is received from NHQ.

2. Units desiring to acquire vehicles/boats will comply with the provisions of Paragraph 1. Such vehicles/boats are not to be operated without authorization from NHQ. [Note: Units that have not obtained their own designation as a 501(c)(3) non-profit organization under the provisions of the IRS code may not accept any vehicles/boats donated as a charitable contribution for tax purposes. Again, we encourage all units/regions to establish their own 501(3)(c) designation through the Internal Revenue Service (See Information Letter 9-01)]. Units are not permitted to negotiate purchases of vehicles or boats in the name of U.S. Naval Sea Cadet Corps, National Organization.

3. Negative reports are required annually, accordingly each unit commanding officer/senior/regional director will fill out and return the Vehicle/Boat Survey Form. If no such property is owned please indicate non-applicable and return form. A Vehicle/Boat Survey Form must be completed for each vehicle and boat, and submitted to NHQ no later than 15 August 2001. This required action will count on your yearly Annual Inspection.

4. Vehicles/boats owned by Navy League Councils, or other sponsoring organizations, but used for Sea Cadet purposes must be covered by liability insurance with the U.S. Naval Sea Cadet Corps and its Affiliates named as additional insured. Use of such vehicles/boats is not authorized without this coverage.

5. This Action Letter will remain in effect until incorporated into NSCC Regulations and other appropriate manuals.

M.D. FORD

MDF/et


Copy to:
NLUS National President
NSCC National Chairman/President
NSCC Headquarters Representatives
NSCC Committee Chairman