CHARTER

charter,n. 1. An instrument that establishes a body politic or other organization, or that grants rights, liberties, or powers to its citizens or members <Charter of the United Nations>.2. An instrument by which a municipality is incorporated, specifying its organizational structure and its highest laws; specif., a written document making the persons residing within a fixed boundary, along with their successors, a corporation and body politic for and within that boundary, and prescribing the powers, privileges, and duties of the corporation. • A city charter trumps all conflicting ordinances. — Also termed municipal charter. [Cases: Municipal Corporations  8.

C.J.S. Municipal Corporations §§ 14, 17–18.]

“Municipal Charters. — The charter issued to a municipality is in the nature of a constitution to it, being superior to all ordinances enacted by that municipality, though inferior in rank to all State laws of every kind.” Frank Hall Childs, Where and How to Find the Law 8 (1922).

home-rule charter.A local government’s organizational plan or framework, analogous to a constitution, drawn by the municipality itself and adopted by popular vote of the citizenry. See

HOME RULE. [Cases: Municipal Cor-porations  65. C.J.S. Municipal Corporations §§ 122, 140–141, 143.]

1. A governmental act that creates a business or defines a corporate franchise; also, the document evidencing this act.

bank charter.A document issued by a governmental authority permitting a bank to conduct

business. [Cases: Banks and Banking  5–6. C.J.S. Banks and Banking §§ 8, 15–18.]

corporate charter. 1.CERTIFICATE OF INCORPORATION(1).2. A document that one files with the secretary of state upon incorporating a business. • The corporate charter is often the articles of incorporation. [Cases: Corporations  18. C.J.S. Corporations §§ 26, 33–35, 41, 559.]

special charter.Hist. A legislative act creating a private corporation as opposed to a public, charitable, or educa-tional corporation. • Special charters were common until the 19th century, when legislatures enacted general incorporation laws that allowed private corporations to be formed without legislative action.

1. The organic law of an organization; loosely, the highest law of any entity. Cf. ARTICLES OF INCORPO-RATION. 5. A governing document granting authority or recognition from a parent organization to a subordinate or constituent organization, such as a local affiliate or chapter, organized under the first organization’s authority; or the instrument granting such authority or recognition. See governing document under DOCUMENT(1).6.Hist. The writing that accompanies a livery of seisin. • Rather than being an operative element of transfer, the writing was merely evidence of it. 7. The leasing or hiring of an airplane, ship, or other vessel. [Cases: Shipping  34–58. C.J.S. Shipping §§ 74–146, 148, 379.] 8.CHARTERPARTY.

bareboat charter.A charter under which the shipowner surrenders possession and control of the vessel to the charterer, who then succeeds to many of the shipowner’s rights and obligations. • The charterer, who provides the personnel, insurance, and other materials necessary to operate the vessel, is known either as a demise charterer or as an owner pro hac vice. — Also termed demise charter. [Cases: Shipping  41. C.J.S. Shipping §§ 92–101.]

“The ‘demise’ or ‘bareboat’ charter is conceptually the easiest to understand. The charterer takes possession and operates the ship during the period of the charter as though the vessel belonged to the charterer. The bareboat charter is thus analogous to the driver who leases a car for a specified period or a tenant who rents a house for a term of years. The charterer provides the vessel’s master and crew (much as the lessee–driver personally drives the car) and pays the operating expenses (much as the lessee–driver buys the gasoline).” David W. Robertson, Steven F. Friedell & Michael F. Sturley, Admiralty and Maritime Law in the United States 371–72 (2001). demise charter.See bareboat charter. gross charter.A charter under which the shipowner provides all personnel and pays all expenses. slot charter.A charter sharing agreement. Cf. space charter.“Slot charters (and vessel-sharing agreements) have become increasingly popular in the container trades, as they enable two or more carriers to combine their capacities and offer more frequent service on their routes. If three carriers all serve the New York to Rotterdam route, for example, and each devotes one vessel to the route every three weeks, they can implicitly (with slot charters) join forces and each offer weekly service.” David W. Robertson, Steven F. Friedell & Michael F. Sturley, Admiralty and Maritime Law in the United States 377 (2001).

space charter.A charter for a part of a vessel’s capacity, such as a specified hold or deck or a specified part of the vessel’s carrying capacity. • A space charter is a form of vessel-sharing agreement. Cf. slot charter.

time charter.A charter for a specified period, rather than for a specific task or voyage; a charter under which the shipowner continues to manage and control the vessel, but the charterer designates the ports of call and the cargo carried. • Each party bears the expenses related to its functions and for any damage it causes. Cf. voyage charter. [Cases: Shipping  40. C.J.S. Shipping §§ 92–101.] voyage charter.A charter under which the shipowner provides a ship and crew, and places them at the disposal of the charterer for the carriage of cargo to a designated port. • The voyage charterer may lease the entire vessel for a voyage or series of voyages — or may (by “space charter”) lease only part of the vessel. Cf. time charter. [Cases: Shipping  41. C.J.S. Shipping §§ 92–101.]“The fundamental difference between voyage and time charters is how the freight or ‘charter hire’ is calculated. A voyage charter party specifies the amount due for carrying a specified cargo on a specific voyage (or series of voyages), regardless of how long a particular voyage takes. A time charter party specifies the amount due for each day that the vessel is ‘on hire,’ regardless of how many voyages are completed.” David W. Robertson, Steven F. Friedell & Michael F. Sturley, Admiralty and Maritime Law in the United States 377 (2001). charter,vb.1. To establish or grant by charter <charter a bank>.2. To hire or rent for temporary [Blacks Law 8th]

use <charter a boat>.