Ask X3What does 49 CFR 387.307 (Property broker surety bond or trust fund) require?
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As Ask X3, your fleet-compliance assistant, here is what 49 CFR 387.307 requires for property brokers:
* Financial Security Amount: A broker must maintain a surety bond or trust fund in effect for the full amount of $75,000. FMCSA will not register a broker without this full amount, and the registration stays in effect only as long as the bond or trust fund remains in effect.
* Purpose: The security ensures the broker's financial responsibility by providing payments to shippers or motor carriers if the broker fails to carry out its transportation contracts, agreements, or arrangements.
* Filing Evidence:
* Surety bonds must be filed using FMCSA's Form BMC-84.
* Trust funds must be filed using FMCSA's Form BMC-85.
* Trust Fund Asset Requirements: Trust funds must contain assets totaling $75,000 that can be liquidated to cash within 7 calendar days. Acceptable assets are strictly limited to cash, Treasury bonds, and irrevocable letters of credit issued by a federally insured depository institution.
* Continuous Coverage and Cancellation: Bonds and trust funds must remain in effect continuously until cancelled. Cancellation requires a 30-day written notice to FMCSA using the prescribed forms (Form BMC-36 for surety bonds, or Form BMC-85 for trust funds), with the notice period starting upon actual receipt at FMCSA's Washington, DC office.