Bond News:
FMCSA Broker and Freight Forwarder Financial Responsibility Rule
Starts January 16th, 2026, brokers and freight forwarders must maintain
a $75k dollar Bond (BMC-84) or Trust (BMC-85).
Here are some key points to remember!
- Asset Readiness: All Trusts
(BMC-85) must be fully collateralized by either cash, ILOC
(Irrevocable Letter of Credit), or Treasury Bonds, allowing the ability to
liquidate in 7 days of an event that triggers payments from a trust.
- The Surety or Trustee must notify
the broker of claims received and provide broker 7 business days for
response
3.
The
Surety or trustees must notify FMCSA within two business days when the broker
fails to respond within the 7 days or provides a response to one or more claims
that, if paid by the surety, would reduce the bond or trust fund below the
required 75k minimum
4.
This
may indicate that the broker or freight forwarder is experiencing financial
failure or insolvency and the surety would be obligated to notify the FMCSA in
2 days.
5.
When
FMCSA is notified that a bond or trust balance falls below the required $75,000,
FMCSA will notify the broker by mail or by electronically that its operating
authority will be suspended within seven days of the date of the notice
unless the broker provides adequate written response.
6.
If
a broker or freight forwarder satisfies all pending claims or is no longer
experiencing financial failure or insolvency, the surety or trustee must notify
the FMCSA in 2 business days to activate authority
It’s all about limiting instances
of nonpayment, improving accountability within the transportation industry, and
reducing damage done by fraudulent actors
What entities are eligible to provide trust funds for brokers and
freight forwarders for BMC-85 Filings?
The recent
rulemaking removes loan or finance companies from this list; thus,
effective January 16, 2026, loan or finance companies will no longer be
eligible to file BMC-85 trust funds.
The remaining
types of financial institutions are regulated by the Federal depository
regulators or an equivalent State regulator. The list of entities eligible to
provide BMC-85 trust funds after January 16, 2026, is:
- A bank insured under the Federal
Deposit Insurance Act,
- A commercial bank or trust
company,
- An agency or branch of a foreign
bank in the Unites States,
- A depository institution insured
under the Federal Deposit Insurance Act,
- A thrift institution such as a
savings bank, building and loan association, credit union, industrial bank
or other,
- An insurance company, and
- A person subject to supervision
by any State or Federal bank supervisory authority.
What are “assets readily available” in trust funds?
As of January
16, 2026, brokers or freight forwarders that maintain trust funds (BMC-85) to
comply with the financial security requirements will be limited in the types of
assets they can place in those trust funds. As for the compliance date,
acceptable assets will be limited to:
Ø Cash
Ø Irrevocable letters of credit issued
by a federal insured depository institution
Ø Treasury bonds
This list of
acceptable assets will provide clarity to brokers, freight forwarders, surety
providers, and financial institutions about the specific assets that meet the
criteria set by Congress in MAP-21, as they are both stable and able to be made
liquid within 7 calendar days.
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