---
title: "BMC-84 Bond vs BMC-85 Trust Fund: Which One Fits"
description: "Both meet the $75,000 FMCSA broker requirement. What each costs in cash and credit, what a trust may hold under the 2026 rule, and what follows a claim."
canonical: https://americassuretybonds.com/requirements/freight-broker-bond/bmc-84-vs-bmc-85/
author: "Phil Pavarini, Insurance Agent"
publisher: "America's Surety Bonds"
date_published: 2026-10-03
date_modified: 2026-10-03
language: en-US
---

[Home](https://americassuretybonds.com/) > [Requirements](https://americassuretybonds.com/requirements/) > [Freight Broker Bond (BMC-84)](https://americassuretybonds.com/requirements/freight-broker-bond/) > BMC-84 bond vs BMC-85 trust

# BMC-84 bond or BMC-85 trust fund

*Same $75,000 requirement, two very different ways to tie up money and credit.*

By Phil Pavarini, Insurance Agent.

> Phil Pavarini is a licensed insurance producer and is compensated when a bond is placed through this site. This page is general information, not legal, tax or fiduciary advice, and it is not a substitute for reading your plan document or contract or for advice from your own counsel. Figures shown are current as of the date on this page.

FMCSA accepts either a surety bond on form BMC-84 or a trust fund on form BMC-85 for the $75,000 broker requirement. On paper they are interchangeable. In practice they cost very different things, and the choice is really a question of whether you would rather spend credit or park cash.

## Side by side

|  | BMC-84 surety bond | BMC-85 trust fund |
| --- | --- | --- |
| **What you put up** | An annual premium and a signed indemnity | $75,000 in qualifying assets, held by a financial institution |
| **Qualifying for it** | Underwritten on credit, finances and experience | Mostly a matter of having the assets |
| **Who files with FMCSA** | The surety | The financial institution acting as trustee |
| **What the security can hold** | Not applicable | Cash, irrevocable letters of credit from a federally insured depository institution, or Treasury bonds, liquid within 7 calendar days |
| **After a claim is paid** | You owe the surety under the indemnity | The trust is drawn down and has to be refilled |
| **If it drops below $75,000** | FMCSA is notified within 2 business days. Suspension follows unless restored within 7 business days. | Same rule. FMCSA is notified within 2 business days and the trust must be restored within 7 business days. |

## When the bond makes more sense

For most brokers, particularly new ones, the bond is the practical choice. It keeps $75,000 of working capital in the business, where a young brokerage usually needs it, in exchange for a premium. If the owners’ credit and finances support it, it is simply the cheaper way to meet the rule.

The thing to remember is that a bond is not insurance for the broker. A claim the surety pays becomes a debt you owe the surety.

## When the trust fund makes more sense

A trust fund avoids underwriting, which is its whole appeal to a broker who cannot qualify for a bond on acceptable terms. The cost is the opportunity cost of $75,000 sitting in restricted assets.

The 2026 rule narrowed what that trust may hold. Assets that cannot be turned into cash within 7 calendar days do not qualify, and only the listed asset types are accepted. A trust set up under the old rules is worth checking against the current list.

## What does not change either way

The amount, $75,000, the 30 days written notice to FMCSA required to cancel, and the suspension clock if the security falls short. Whichever form you choose, the security is part of your operating authority, and it should be managed with the same attention.

Ready to get your broker authority bonded? [Apply for this bond](https://americassuretybonds.propeller.insure/axelerator-public/RQ1000337A9?bond_id=4996) or read the [full bond details](https://americassuretybonds.com/state/All-States/All-States/BMC-84-Freight-Forwarder-Broker-($75,000)).

## Common questions

**Is a BMC-84 bond or a BMC-85 trust fund cheaper?**

In cash terms the bond usually is, because you pay a premium instead of setting aside $75,000. The trust fund avoids credit underwriting but ties up the full amount in qualifying assets. Which is cheaper overall depends on what that $75,000 would otherwise earn in your business and on the premium you qualify for.

**Can a BMC-85 trust fund hold any kind of asset?**

No. Under 49 CFR 387.307 as in effect from January 16, 2026, the trust may hold only cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds, and the assets must be able to be liquidated within 7 calendar days.

**Can I switch from a trust fund to a bond?**

Yes. The security just has to be continuously in place for the full $75,000. Put the new security on file before the old one is cancelled, and remember that cancellation requires 30 days written notice to FMCSA, so plan the changeover around that.

## Related guides

- [Freight Broker Bond (BMC-84)](https://americassuretybonds.com/requirements/freight-broker-bond/)

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**Phil Pavarini, Insurance Agent.** Licensed insurance producer (NPN 8314541, CA License No. 4481016), licensed in 49 states and the District of Columbia. Has placed probate, fiduciary, court, contractor and commercial surety since 2004, and writes about the bonds he actually files.

This website is a referral and informational platform. It is not a surety, an insurer, a bonding company, or a law firm. Bond inquiries may be referred to a licensed agency, agent or carrier for quoting, underwriting and issuance. If you already have a bond, the agent of record and the issuing surety are identified on your bond form, power of attorney, or invoice. Please direct all questions about an existing bond to that party. Content on this site is general information only and is not legal, tax or financial advice. Bond requirements vary by jurisdiction and change frequently. Verify all requirements with the applicable court, agency or obligee.

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