Trust Fund Agreement (Form Bmc-85)

When it comes to the transportation industry, the importance of trust cannot be overstated. Trust is essential for businesses to operate successfully and efficiently. This is why the Federal Motor Carrier Safety Administration (FMCSA) requires motor carriers and freight brokers to establish trust fund agreements with their clients. One such agreement is the BMC-85 form.

The BMC-85 form is a trust fund agreement that is used to provide financial protection to shippers and receivers of freight. This agreement establishes a trust fund account, which is used to compensate shippers and receivers in case of loss or damage to their freight during transportation. The BMC-85 form serves as proof of financial responsibility for motor carriers and freight brokers, ensuring that they are able to pay for any damages or losses that may occur during transportation.

The BMC-85 trust fund agreement is mandatory for all freight brokers and motor carriers required to have operating authority under federal law. This includes those who transport hazardous materials, as well as those who operate vehicles with a gross weight of over 10,000 pounds. The trust fund account must be established in the name of the motor carrier or freight broker and must be maintained with a financial institution that is authorized to do business in the United States.

One of the main benefits of the BMC-85 trust fund agreement is that it helps to establish trust between the motor carrier or freight broker and their clients. By establishing a trust fund account, the motor carrier or freight broker demonstrates that they are financially responsible and able to pay for any damages or losses that may occur during transportation. This can help to give clients peace of mind, knowing that their freight is being transported by a reliable and trustworthy carrier.

In addition to establishing trust, the BMC-85 trust fund agreement can also help to protect the motor carrier or freight broker from liability. If a client files a claim against the carrier for damages or losses, the trust fund account can be used to pay for the claim, protecting the carrier from financial ruin.

Overall, the BMC-85 trust fund agreement is an essential component of the transportation industry. It ensures that motor carriers and freight brokers are financially responsible and able to compensate clients in case of loss or damage to their freight. By establishing trust between carriers and clients, this agreement helps to facilitate the safe and efficient transportation of goods across the country.