What you need to know about BMC84/BMC85 compliance and the new MAP-21 law
How to avoid an expensive mistake which could jeopardize your authority and ability to legally conduct business.
As of 8/7/2013:
The 75K BMC85/BMC84 requirement became effective October 1, 2013. Many of our customers are researching available options. These are some recommendations we can offer to help insure that, what you are considering will be accepted and compliant with the new law.
Know the only acceptable Trust/Bond options at this point in time:
Combination of the two (1)
Know what is being filed on your behalf - an BMC84 or an BMC85:
BMC-84’s are provided by licensed insurance companies which are recognized as such by the U.S. Department of Treasury. If your bond company is filing an 84 you are purchasing an insurance product, specifically a “surety” bond. You should be provided and keep on file the following documents:
Form BMC-84 with a unique serial/bond ID number assigned to your specific MC number and associated legal name. The document should be signed by both the underwriter and the broker.
A General Indemnity Agreement (GIA). The GIA should be tied to the bond serial number and signed by both parties.
BMC-85’s are provided by financial institutions which are authorized by the FMCSA. If your trust company is filing an 85 then you are assigning them as Trustee for your cash deposit which is held in trust. A BMC85 is not a surety or an insurance product. The current Form BMC-85 is a working legal document produced by the Federal government. Both parties are attesting that the trust company has received $10,000 in cash (2). There are no provisions for cash substitutes. Recommendation:
Know that a “Group Bond” option has not been authorized at this time.
A provision that the Secretary may authorize the use of “group bond” does exist within the law, however, this has not occurred. At this date there has been no indication that a group bond option is being considered and no rules have been promulgated for its implementation. (3)
(1) MAP-21 pg. 426, Sec.32918(a)(b)(1)(A)
(2) Paragraph 4. “Trustee acknowledges the receipt of the sum of Ten Thousand Dollars ($10,000.00)…” Form BMC-85, Approved OMB 2126-0017.
(3) MAP-21 pg. 426, Sec.32918(a)(b)(1)(B)Type your paragraph here.
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