BMC-84 vs BMC-85: Broker Bonds After the 2026 Rule Change

Updated 2026-08-10

BMC-84 and BMC-85 are the two FMCSA forms a property broker can file to satisfy the same requirement: 49 CFR 387.307 provides that “a broker must have a surety bond or trust fund of $75,000 in effect.” The BMC-84 files a surety bond; the BMC-85 files a trust fund held at a financial institution.

Same coverage amount, same purpose — the security exists so shippers and carriers can be paid if the broker does not carry out its agreements. The difference is where the $75,000 comes from and who is holding it.

Side by side

Neither is “better” in the abstract. A broker with thin credit and cash to spare may find the trust route open when the bond route is expensive; a broker who needs its cash working will pay a premium to keep it. What has changed is that the trust route now carries compliance obligations that were not enforced before.

What changed on January 16, 2026

The financial responsibility rule’s compliance date was extended, and that extension set a single date. Per the Federal Register notice, “brokers, freight forwarders, surety providers, and financial institutions must comply with all the provisions of Sec. 387.307 beginning on January 16, 2026,” with the temporary section expiring: “Section 387.307T … expires as of January 16, 2026. Section 387.307 is stayed until January 16, 2026” (GovInfo).

Three things came into force on that date:

1. Suspension when the security drops — with a short, specific cure window. If a broker’s or freight forwarder’s available financial security falls below $75,000, FMCSA suspends the operating authority. But the rule is not instantaneous, and the sequence is worth knowing precisely, because it is the part competing pages skip. Under 49 CFR 387.307(e) — a paragraph titled “Immediate suspension” that nonetheless contains a cure period:

   • The surety or financial institution must notify FMCSA “within 2 business days” of the payment or determination that drew the security down (387.307(e)(4)).
   • FMCSA then serves written notice on the broker, which has 7 business days from service to produce evidence that the bond or trust fund has been restored to $75,000, or that the claims were otherwise satisfied (387.307(e)(5)).
   • Only if the broker does not respond within those 7 business days does FMCSA enter the suspension (387.307(e)(6)).

   Seven business days and a written notice is a different operational reality from instant loss of authority — for the broker, it is the window to fix it; for a carrier watching a broker’s authority, it means a drawdown has already happened by the time a suspension appears.

2. Provider obligations on financial failure or insolvency. Notification and cancellation duties for the surety or financial institution.

3. Enforcement against providers. Per the notice, “beginning on January 16, 2026, a surety company or financial institution for a broker or freight forwarder … that violates 49 U.S.C. 13906(b) or (c)” faces penalties and ineligibility.

The statute behind that third item: under 49 U.S.C. 13906, a non-complying surety provider “shall be liable to the United States for a civil penalty in an amount not to exceed $10,000” and “shall be ineligible to provide [broker] financial security for 3 years.”

Two numbers matter here and most pages print only one. The $10,000 is the statutory ceiling, written into 13906 and unchanged. The amount FMCSA actually applies is inflation-adjusted: the same Federal Register notice states that a violating surety company or financial institution “is liable to the United States for a penalty of $12,882 for each violation” (GovInfo). Civil penalty maximums are adjusted annually, so treat $12,882 as the current figure rather than a permanent one — but it is the operative number, not the $10,000.

Why this matters even if you never think about your bond: the asset rules in 387.307 — cash, irrevocable letters of credit from a federally insured depository institution, or Treasury bonds, liquidatable within 7 calendar days — rule out arrangements some trust providers had been offering. A broker whose trust provider cannot meet those terms is a broker whose authority is exposed, and a carrier hauling for that broker is relying on security that may not be there.

How a carrier actually collects on a broker’s security

This is the part almost no page covers, and it is the reason the number matters to carriers, not just to brokers. 49 U.S.C. 13906 sets the sequence when the security is cancelled after a broker’s failure. The provider must:

1. Submit a notice to cancel the financial security to the Administrator.
2. Publicly advertise for claims for 60 days.
3. Pay, “not later than 30 days after the expiration of the 60-day period for submission of claims — all uncontested claims received during such period; or a pro rata share” where claims exceed the security.

Three consequences for a carrier chasing money from a failed broker:

• There is a window, and it closes. Claims are collected during an advertised 60-day period. A carrier that finds out late gets nothing.
• “Pro rata share” is the normal outcome, not the exception. The security is $75,000 total, not $75,000 per claimant. A broker moving a few hundred loads a month can owe multiples of that when it fails.
• Documentation decides “uncontested.” Your signed rate confirmation, signed BOL, and invoice are what make a claim uncontested rather than disputed.

The honest read: the $75,000 is a screening mechanism that keeps unfunded operators out of the market. It is not insurance for your receivables. Credit-checking the broker, watching payment behavior, and keeping clean paperwork do more for your cash than the bond ever will.

Which one should a broker file?

The trade is capital versus premium, and it is genuinely a judgment call:

• Cash is scarce, credit is decent → the bond keeps $75,000 working in the business.
• Cash is plentiful, credit is damaged → a trust may be available when bond pricing is not.
• Either way → confirm your provider meets the current 387.307 asset and eligibility terms, because the consequence of a non-compliant provider is your authority, not just their problem.

And the requirement is not optional for anyone arranging freight: 49 U.S.C. 14916 permits brokerage services only by a person registered under section 13904 and in compliance with the financial security requirements of section 13906 — the same statute that carries a penalty “not to exceed $10,000 for each violation” and reaches “the individual officers, directors, and principals.” See co-brokering vs double brokering.

FAQ

What is the difference between a BMC-84 and a BMC-85? The instrument, not the amount. Both satisfy the $75,000 requirement in 49 CFR 387.307. The BMC-84 files a surety bond, where a surety company stands behind the obligation for a premium. The BMC-85 files a trust, where the assets themselves are held at a financial institution.

How much does a freight broker bond cost? Premium is credit-dependent and set by the surety. Sellers publish ranges in the region of 2–10% of the $75,000 (SuretyBonds.com, checked 2026-08-10) — that is a seller’s published range, not a regulated rate, so treat it as an indication and get quotes.

What happens if my security drops below $75,000? Since January 16, 2026, the financial responsibility rule’s provisions in 387.307 apply in full (Federal Register notice). The sequence: your provider must notify FMCSA within 2 business days of the drawdown; FMCSA serves you written notice; you have 7 business days from service to show the security is back to $75,000 or the claims were satisfied; if you do not, FMCSA suspends the operating authority (49 CFR 387.307(e)).

Is $75,000 enough to protect a carrier? Often not. It is a single pool shared by every claimant against that broker, and a mid-sized broker’s payables can exceed it several times over. Treat it as a market-entry screen, not as coverage.

Related

• Co-brokering vs double brokering: where the legal line is
• Rate confirmation: fields, template, records
• Detention fees and the evidence that gets them paid