(a) Upon written request by a qualified institution, a determination is made by the OCMI whether the vessel may be designated as a sailing school vessel.

(b) The request should contain sufficient information to allow the OCMI to make this determination. At a minimum the following items must be submitted:

(1) A detailed description of the vessel, including its identification number, owner, and charterer.

(2) A specific operating plan stating precisely the intended use of the vessel and the intended course of instruction for sailing school students.

(3) A copy of the Internal Revenue Service designation as a non-profit, tax-exempt, organization under sections 501(a) and 501(c)(3) of the Internal Revenue Code.

(4) An affidavit certifying that the owner or charterer has financial resources to meet any liability incurred for death or injury to sailing school students or sailing school instructors on voyages aboard the vessel, in an amount not less than $50,000 for each student and instructor.

(5) Any additional information as requested by the Officer in Charge, Marine Inspection.

(c) If a designation is granted it is indicated on the certificate of inspection and remains valid for the duration of the certificate, provided all operating conditions remain unchanged.

(d) In the event of a change, the institution must advise the OCMI who issued the designation. After reviewing the pertinent information concerning the change, the OCMI shall determine if the vessel is eligible to retain its designation as a sailing school vessel.