Form Bmc 85 PDF Details

In an era where the regulatory framework surrounding commercial transportation is both comprehensive and complex, the BMC-85 form represents a critical component in ensuring that brokers and freight forwarders meet federal requirements for financial responsibility. Revised last in March 2014, with an OMB No. of 2126-0017 and an expiration date previously set for February 2017, this document serves a pivotal role within the operations of transportation intermediaries. Mandated by the Federal Motor Carrier Safety Administration (FMCSA), a part of the United States Department of Transportation, the BMC-85 form, also known as the Broker's or Freight Forwarder's Trust Fund Agreement, is intrinsically designed to safeguard the interests of motor carriers and shippers by ensuring that brokers and freight forwarders maintain a trust fund or a surety bond of $75,000. This requirement, grounded in regulatory statutes including 49 U.S.C. 13906, aims to ensure that transportation intermediaries are sufficiently capitalized to meet their obligations to motor carriers and shippers. The form outlines the conditions under which the trust or bond is managed, the process for making claims against it, and the responsibilities of both the trustor (the broker or freight forwarder) and the trustee (the financial institution holding the trust). Its stringent reporting requirements to the FMCSA, including notifications of lawsuits, judgments, payments, and any changes to the trust fund, underscore the commitment of federal authorities to maintaining transparency and accountability in the transportation industry. Additionally, the BMC-85 form specifies the procedural norms for the cancellation of the agreement, including a 30-day written notice requirement, emphasizing the regulated nature of the brokerage and freight forwarding industry. Through this form, a system is established whereby financial solvency and reliability are foregrounded, thereby protecting the economic interests of those reliant on the transportation of goods.

QuestionAnswer
Form NameForm Bmc 85
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesICC, BMC-85, OMB, hereinbefore

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ORM BMC-85 Revised 03/11/2014

OMB No.: 2126-0017 Expiration: 02/28/2017

 

 

A Federal Agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB Control Number. The OMB Control Number for this information collection is 2126-0017. Public reporting for this collection of information is estimated to be approximately 10 minutes per response, including the time for reviewing instructions, gathering the data needed, and completing and reviewing the collection of information. All responses to this collection of information are mandatory. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to: Information Collection Clearance Officer, Federal Motor Carrier Safety Administration, MC-RRA, Washington, D.C. 20590.

United States Department of Transportation

Federal Motor Carrier Safety Administration

Broker’s or Freight Forwarder’s Trust Fund Agreement under 49 U.S.C. 13906 or Notice of Cancellation of the Agreement

FORM BMC-85

Filer FMCSA Account Number:

License No. MC-

KNOW ALL MEN BY THESE PRESENTS, that we,

 

,

  (Name of Broker or Freight Forwarder)

of

 

 

 

 

 

 

 

 

 

 

,

 

  (Street)

 

 

  (City)

 

 

(St te)

 

  (Zip)

 

 

 

 

 

Alabama

 

 

 

as TRUSTOR (hereinafter called Trustor), and

 

 

 

 

 

Alaska

 

 

,

 

 

  (Name of Trustee)

 

 

American Samoa

 

 

 

a financial institution created and existing under the laws of the State of

 

 

 

 

 

 

 

 

as TRUSTEE (hereinafter called Trustee)

 

 

 

 

 

(St te)

 

 

Arizona

 

 

 

 

 

 

 

 

Alabama

 

Arkansas

 

 

 

hold and firmly bind ourselves and our heirs, executors, administrators, successors,Alaska and assigns, jointly and severally, firmly by these

presents.

 

 

 

American Samoa

 

California

 

 

 

WHEREAS, the Trustor is or intends to become either a Broker or a Freight Forwarder pursuant to the provisions of the Title 49 U.S.C.

 

 

 

 

 

Arizona

 

Colorado

 

 

 

13904, and the rules and regulations of the Federal Motor Carrier Safety Administration (FMCSA) relating to insurance or other security

for the protection of motor carriers and shippers, and has elected to file

Arkansas

 

Connecticut

 

 

 

with the Federal Motor Carrier Safety Administration such a Trust

Fund Agreement as will ensure financial responsibility and the supplying of transportation subject to the ICC Termination Act of 1995 in

California

Delaware

accordance with contracts, agreements, or arrangements therefor, and Colorado

District of Columbia

WHEREAS, this Trust Fund Agreement is written to assure compliance by the Trustor as either a licensed Broker or a licensed Freight

 

Connecticut

Florida

Forwarder of Transportation by motor vehicle with 49 U.S.C 13906(b), and the rules and regulations of the Federal Motor Carrier Safety

 

 

Georgia

Administration, relating to insurance or other security for the protection ofDelawaremotor carriers or shippers, and shall inure to the benefit of

any and all motor carriers or shippers to whom the Trustor may be legally liable for any of the damages herein described.

 

District of Columbia Guam

NOW, THEREFORE, the trustor and trustee, to accomplish the above, agree as follows:

Hawaii

 

Florida

1.  Trustee agrees that payments made pursuant to the security provided herein to shippers and motor carriers pursuant to this

 

Georgia

Idaho

Agreement will be made exclusively and directly to shippers or motor carriers that are parties to contracts, agreements or

arrangements with Trustor.

Guam

Illinois

 

 

Indiana

2.  Trustee agrees that the protection afforded to shippers and motor carriersHawaiihereby will continue until any and all claims made by

shippers or motor carriers for which Trustor may be legally liable have been settled or until the funds deposited by Trustor pursuant

to this Agreement have been exhausted, whichever comes first.

Idaho

Iowa

Illinois

Kansas

 

3.  The parties hereto acknowledge and certify that said Trustee shall exclusively manage the security and trust fund, as herein set forth,

 

Indiana

Kentucky

and shall have legal title to the security and trust fund, pursuant to the terms and conditions as set forth in this agreement. Further,

 

 

acknowledge and certify that (a) said

the parties hereto, and the said Trustee, as evidenced by their signatures to this agreement, Louisiana

 

Iowa

 

Trustee, neither has nor expects to have any interest, financial, proprietary, or otherwise, whatsoever, in Trustor; and (b) said Trustor,

 

Kansas

Maine

neither has nor expects to have any interest, financial, proprietary, or otherwise, whatsoever, in Trustee.

 

Kentucky

Marshall Islands

4.  Trustee acknowledges the receipt of the sum of Seventy Five Thousand Dollars ($75,000) for a Broker or Freight Forwarder, to be held

in trust under the terms and conditions set forth herein.

Louisiana

Maryland

 

 

Massachusetts

5.  Trustee may, within its sole discretion, invest the funds comprising theMainecorpus of this trust fund consistent with its fiduciary

obligation under applicable law.

Marshall Islands

Michigan

6.  Trustee shall pay, up to a limit of Seventy Five Thousand Dollars ($75,000) for a Broker or Freight F rwarder, directly to a shipper or

 

Maryland

Micronesia

motor carrier any sum or sums which Trustee, in good faith, determines that the Trustor has failed to pay and would be held legally

 

 

Minnesota

liable by reason of Trustor’s failure to perform faithfully its contracts, agreementMassachusetts, or arrangements for transportation by authorized

motor carriers, made by Trust or while this agreement is in effect, regardless of the financial responMississippiibility or lack thereof, or the

solvency or bankruptcy, of Trustor.

Michigan

Missouri

Micronesia

 

 

Minnesota

Montana

 

FORM BMC-85 Page 1 of 2Mississippi

Nebraska

 

Missouri

Nevada

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CFR empty fields to consider

Type in the necessary particulars in reasonable notice and to the FMCSA, This agreement shall be governed, to the extent not inconsistent, and regulations of the FMCSA, This trust fund agreement is, day of, am standard time at the, Trustee shall not be liable for, IN WITNESS WHEREOF the said, day of, TRUSTOR, TRUSTEE, COMPANY NAME, COMPANY NAME, and STREET ADDRESS section.

part 2 to entering details in CFR

You will have to put down particular particulars inside the area Principal officers signature, Principal officers signature, type or print witnesss name, type or print witnesss name, witnesss signature, witnesss signature, NOTICE OF CANCELLATION, This is to advise that the above, Only financial institutions as, is hereby cancelled as security in, day of, b and CFR effective as of the, day of, of the trustor provided such date, and am standard time at the address.

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