Form BMC-85 Broker's or Freight Forwarder's Trust Fund Agreement Und

FORM BMC-85  Revised 05/21/2013

OMB No.: 2126-0017  Expiration: 01/31/2014

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:
KNOW ALL MEN BY THESE PRESENTS, that we,
of

 (Street)

as TRUSTOR (hereinafter called Trustor), and

,

  (Name of Broker or Freight Forwarder)
 (City)

 (State)

 (Zip)

,

  (Name of Trustee)

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

,

 (State)

as TRUSTEE (hereinafter called Trustee)

hold and firmly bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these
presents.
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.
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 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
accordance with contracts, agreements, or arrangements therefor, and
WHEREAS, this Trust Fund Agreement is written to assure compliance by the Trustor as either a licensed Broker or a licensed Freight
Forwarder of Transportation by motor vehicle with 49 U.S.C 13906(b), and the rules and regulations of the Federal Motor Carrier Safety
Administration, relating to insurance or other security for the protection of motor 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.
NOW, THEREFORE, the trustor and trustee, to accomplish the above, agree as follows:
  1. Trustee agrees that payments made pursuant to the security provided herein to shippers and motor carriers pursuant to this
Agreement will be made exclusively and directly to shippers or motor carriers that are parties to contracts, agreements or
arrangements with Trustor.
  2. Trustee agrees that the protection afforded to shippers and motor carriers hereby 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.
  3. The parties hereto acknowledge and certify that said Trustee shall exclusively manage the security and trust fund, as herein set forth,
and shall have legal title to the security and trust fund, pursuant to the terms and conditions as set forth in this agreement. Further,
the parties hereto, and the said Trustee, as evidenced by their signatures to this agreement, acknowledge and certify that (a) said
Trustee, neither has nor expects to have any interest, financial, proprietary, or otherwise, whatsoever, in Trustor; and (b) said Trustor,
neither has nor expects to have any interest, financial, proprietary, or otherwise, whatsoever, in Trustee.
  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.
  5. Trustee may, within its sole discretion, invest the funds comprising the corpus of this trust fund consistent with its fiduciary
obligation under applicable law.
  6. Trustee shall pay, up to a limit of Seventy Five Thousand Dollars ($75,000) for a Broker or Freight Forwarder, directly to a shipper or
motor carrier any sum or sums which Trustee, in good faith, determines that the Trustor has failed to pay and would be held legally
liable by reason of Trustor’s failure to perform faithfully its contracts, agreements, or arrangements for transportation by authorized
motor carriers, made by Trust or while this agreement is in effect, regardless of the financial responsibility or lack thereof, or the
solvency or bankruptcy, of Trustor.
FORM BMC-85 Page 1 of 2

FORM BMC-85  Revised 05/21/2013

OMB No.: 2126-0017  Expiration: 01/31/2014

  7. In the event that the trust fund is drawn upon and the corpus of the trust fund is a sum less than Seventy Five Thousand Dollars
($75,000) Brokers or Freight Forwarders, Trustor shall, within thirty (30) days, replenish the trust fund up to Seventy Five Thousand
Dollars ($75,000) Brokers or Freight Forwarders by paying to the Trustee a sum equal to the difference between the existing corpus
of the trust fund and Seventy Five Thousand Dollars ($75,000) Brokers or Freight Forwarders.
  8. Trustee shall immediately give written notice to the FMCSA of all lawsuits filed, judgments rendered, and payments made under this
trust agreement and of any failure by Trustor to replenish the trust fund as required herein.
  9. This agreement may be canceled at any time upon thirty (30) days written notice by the Trustee or Trustor to the FMCSA on the
form printed at the bottom of this agreement. The thirty (30) day notice period shall commence upon actual receipt of a copy of the
trust fund agreement with the completed notice of cancellation at the FMCSA’s Washington, DC office. The Trustee and/or Trustor
specifically agrees to file such written notice of cancellation.
10. All sums due the Trustee as a result, directly or indirectly, of the administration of the trust fund under this agreement shall be billed
directly to Trustor and in no event shall said sums be paid from the corpus of the trust fund herein established.
11. Trustee shall maintain a record of all financial transactions concerning the Fund, which will be available to Trustor upon request and
reasonable notice and to the FMCSA upon request.
, to the extent not inconsistent with the rules

12.  This agreement shall be governed by the laws in the State of
and regulations of the FMCSA.

This trust fund agreement is effective the
day of
,
, 12:01 a.m., standard time at the
address of the Trustor as stated herein and shall continue in force until terminated as herein provided.
Trustee shall not be liable for payments of any of the damages hereinbefore described which arise as the result of any contracts,
agreements, undertakings, or arrangements made by the Trustor for the supplying of transportation after the cancellation of this
Agreement, as herein provided, but such cancellation shall not affect the liability of the Trustee for the payment of any such damages
arising as the result of contracts, agreements, or arrangements made by the Trustor for the supplying of transportation prior to the date
such cancellation becomes effective.
IN WITNESS WHEREOF, the said Principal and Surety have executed this instrument on the
TRUSTOR

TRUSTEE

COMPANY NAME

COMPANY NAME

STREET ADDRESS
STATE

ZIP CODE

CITY

STREET ADDRESS

TELEPHONE NUMBER

STATE

,

ZIP CODE

TELEPHONE NUMBER

(type or print Principal officer’s name and title)

(Principal officer’s signature)

(Principal officer’s signature)

(type or print witness’s name)

(type or print witness’s name)
(witness’s signature)

NOTICE OF CANCELLATION
This is to advise that the above Trust Fund Agreement executed on the
day of
is hereby cancelled as
,
security in compliance with the FMCSA security requirements under 49 U.S.C.
13906(b) and 49 CFR 387.307, effective as of the

.

CITY

(type or print Principal officer’s name and title)

(witness’s signature)

Only financial institutions as defined under 49 CFR 387.307(c) may qualify
to act as Trustee. Trustee, by the above signature, certifies that it is a financial
institution and has legal authority to assume the obligations of Trustee and
the financial ability to discharge them.

day of

,
, 12:01 a.m., standard time at the address
of the trustor, provided such date is not less than thirty (30) days after the
actual receipt of this notice by the FMCSA.
Date Signed

day of

Signature of Authorized Representative
of Trustee or Trustor

FORM BMC-85 Page 2 of 2

(affix Trustee seal)