(a) The Coast Guard may terminate an authorization agreement with a classification society if:
(1) The Commandant revokes the classification society's recognition, as specified in Sec. 8.260; or
(2) The classification society fails to comply with the conditions of the authorization agreement as specified in Sec. 8.130.
(b) In the event that a flag administration of a country changes conditions related to the authority that is delegated to ABS, the Commandant may modify or revoke the Coast Guard's authorization of that classification society that has its headquarters in that country.
(c) Certificates issued by a classification society which has had its authorization terminated will remain valid until the next classification society survey associated with that certificate is required or until the certificate expires, whichever occurs first.