Ask X3What does 49 CFR 387.307T (Property broker surety bond or trust fund) require?
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According to 49 CFR 387.307T, a property broker must maintain a surety bond or trust fund in effect for $75,000 to ensure their financial responsibility. Specifically, the regulation requires:
* License Requirement: The FMCSA will not issue a broker license until this $75,000 surety bond or trust fund is in effect, and the license remains valid only as long as the security stays in effect.
* Filing Evidence:
* Evidence of a surety bond must be filed with the FMCSA using Form BMC 84.
* Evidence of a trust fund must be filed with a financial institution using Form BMC 85.
* Both must be filed with the FMCSA in duplicate.
* Purpose: The bond or trust fund guarantees payments to shippers or motor carriers if the broker fails to fulfill its transportation contracts, agreements, or arrangements.
* Continuous Coverage: The security must remain in effect continuously until cancelled or replaced. It can be cancelled only upon providing 30 days' written notice to the FMCSA (using Form BMC 36 for surety bonds, or Form BMC 85 for trust funds).