A BMC-85 trust fund is one of two ways a property broker or freight forwarder can meet the Federal Motor Carrier Safety Administration’s $75,000 financial responsibility requirement: instead of buying a surety bond, the broker deposits the full $75,000 with an eligible financial institution, which holds it in trust to pay shippers and carriers the broker fails to pay. Every broker and freight forwarder must keep that $75,000 in security on file before conducting any business, regardless of how many branch offices or sales agents they run.1Office of the Law Revision Counsel. 49 U.S.C. 13906 – Security of Brokers and Freight Forwarders The FMCSA will not activate broker authority until a qualifying trust or bond is in effect, and the authority stays alive only as long as that security does.2eCFR. 49 CFR 387.307 – Property Broker Surety Bond or Trust Fund
How the Trust Fund Compares to a BMC-84 Surety Bond
Both filings satisfy the same $75,000 requirement, but they hit your balance sheet very differently. A trust fund requires you to hand over the full $75,000 in qualifying assets, which then sits locked at the trustee for as long as you’re operating. A BMC-84 surety bond works like an insurance product: a surety company guarantees the $75,000, and you pay an annual premium that varies with your credit.2eCFR. 49 CFR 387.307 – Property Broker Surety Bond or Trust Fund
The tradeoff is cash flow versus recoverable capital. A bond keeps your working capital free but the premiums are gone for good. A trust ties up $75,000 in working capital, but the money remains yours and, subject to claims, comes back when you cancel. Brokers with strong balance sheets and clean credit often prefer the bond for liquidity. Brokers who can’t get bond premiums at a reasonable rate sometimes find the trust more accessible.
Who Can Hold the Trust and What Can Sit in It
The trustee has to be a regulated financial institution. That includes insured banks, commercial banks and trust companies, agencies or branches of foreign banks operating in the U.S., insured depository institutions, thrift institutions such as credit unions and savings banks, insurance companies, and any entity supervised by a state or federal banking authority.2eCFR. 49 CFR 387.307 – Property Broker Surety Bond or Trust Fund The field is wider than many brokers realize, so it pays to shop trustee fees.
The assets in the trust must total at least $75,000 and must be convertible to cash within seven calendar days. Only three categories qualify: cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds.2eCFR. 49 CFR 387.307 – Property Broker Surety Bond or Trust Fund Stocks, corporate bonds, mutual funds, and real estate are out. Most brokers just deposit $75,000 in cash because it’s the cleanest option; Treasury bonds are viable if you want a small return on the locked capital, though the trustee may charge extra to manage them.
Filing the BMC-85 With the FMCSA
The trust agreement itself runs on Form BMC-85, the FMCSA’s standardized document. It names the broker as the trustor and the financial institution as the trustee, and the trustee acknowledges receipt of the $75,000.3Federal Motor Carrier Safety Administration. Form BMC-85 – Broker’s or Freight Forwarder’s Trust Fund Agreement Under 49 U.S.C. 13906 The broker supplies its legal business name, a principal officer’s name and title, its street address, and its USDOT number.
The trustee files the completed form electronically with the FMCSA through the agency’s E-filer system. The broker does not file it. If the institution isn’t already registered as a financial responsibility provider, it has to contact the FMCSA to set that up before it can submit anything.4Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility Rule Overview and Compliance Requirements Once the FMCSA processes the filing, the broker’s authority status updates in the agency’s public records, which is what shippers and carriers use to confirm you’re properly licensed. Switching trustees, or moving from a bond to a trust, follows the same path: the new provider submits its own filing through E-filer.
Replenishment and Suspension Under the 2026 Rules
The trust has to stay fully collateralized at all times. If a claim payout or any other drawdown pulls the balance below $75,000, you have seven calendar days to restore it. As of January 16, 2026, the FMCSA enforces this strictly: if the broker doesn’t provide evidence of replenishment within that window, operating authority is suspended immediately, with no grace period beyond the seven days.4Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility Rule Overview and Compliance Requirements
Trustees are now required to notify the FMCSA when the $75,000 minimum is breached and not timely restored.4Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility Rule Overview and Compliance Requirements The FMCSA sends notification of a required replenishment by regular mail, and by email if an address is on file.5Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility Rule FAQs Practically, a single large valid claim can put your authority a week away from suspension if you don’t have the cash on hand to top the trust back up.
A second suspension trigger sits with the trustee. If the FMCSA determines your trust provider no longer meets eligibility requirements, you have 30 days to secure a replacement filing from a qualified institution. Miss that 30-day deadline and your authority is suspended.5Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility Rule FAQs
How Claims Against the Trust Work
A shipper or motor carrier the broker hasn’t paid can file a claim directly against the trust fund. The FMCSA does not adjudicate individual disputes; the claimant deals with the trustee or gets legal counsel.6Federal Motor Carrier Safety Administration. Broker and Freight Forwarder Financial Responsibility 2023 Rule Frequently Asked Questions The claimant contacts the trustee, identifies the debt, and provides supporting documentation such as bills of lading, rate confirmations, and unpaid invoices. The trustee reviews the claim against the trust agreement and, if it’s valid, pays out of the $75,000 pool.
When pending claims exceed what’s left in the trust, remaining assets may be distributed proportionally rather than strictly by filing order. That matters: $75,000 does not go far against a dozen unpaid carriers. When a broker becomes insolvent or enters bankruptcy, the FMCSA publishes notice of the failure in the FMCSA Register, and from that date the trustee must accept claims for 60 calendar days. If day 60 falls on a weekend or federal holiday, the deadline moves to the next business day.7eCFR. 49 CFR Part 387 Subpart C – Surety Bonds and Policies of Insurance for Motor Carriers and Property Brokers Miss that window and you can forfeit your right to recover.
Cancellation and Getting the $75,000 Back
The trust runs continuously until formally cancelled. Cancellation takes 30 days’ written notice to the FMCSA on Form BMC-36, filed by either the broker or the trustee.2eCFR. 49 CFR 387.307 – Property Broker Surety Bond or Trust Fund The broker’s authority stays active through those 30 days, which gives time to line up a replacement bond or trust. If nothing replaces the filing, the authority is suspended when cancellation takes effect.
When cancellation is triggered by financial failure or insolvency, the trustee has to keep taking claims through the 60-day window described above.8Federal Register. Broker and Freight Forwarder Financial Responsibility Remaining assets only come back to the broker after that period closes and all valid claims are resolved. If you’re planning a clean wind-down, budget for the fact that your $75,000 will not be available until well after you stop operating.