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  1. chefman
    chefman is offline Member
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    Bmc84 Vrs. Bmc85

    What is the difference between these two?
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  2. james scott
    james scott is offline Junior Member
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    difference 84/85

    A BMC-84 is a broker bond issued by insurance companies or suretys.
    A BMC-85 is a broker trust fund administated by a USDOT authorized financial institution.

    BMC-84-insurance company guarantees performance
    BMC-85-broker guarantees his own performance
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  3. Admin
    Admin is offline Administrator
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    James is correct. The title BMC-84 is actually the governments term. In the surety industry it is typically referred to as an ICC Bond.
    Surety Bond Articles
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  4. Phillies
    Phillies is offline Member
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    BMC84 vs BMC85

    One more comment on the difference between these two items... If you are pursuing the BMC-85 (Trust Fund), you will undoubtedly have to post the $10,000 in some form of collateral (ILOC, real estate, etc.) in addition to a premium. This option is great for companies that don't qualify for the actual ICC Bond (BMC-84) due to poor credit.
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  5. Admin
    Admin is offline Administrator
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    There is no need to post an ILOC or real estate for the BMC-85, as it is a trust fund, not a guarantee like the bond. The broker would give $10,000 cash to a bank within 1 year. If there is a claim, their cash is used from the BMC-85 trust account.

    It is quite common to have to post 100% collateral in the form of an ILOC or real estate for the bond (BMC-84) for companies that are too high of a risk to be bonded otherwise. If and when 100% collateral is required for the bond, the BMC-85 trust fund is then a better choice. However, if you can get the bond approved without collateral then it is your best option.
    Surety Bond Articles
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  6. Carboholic
    Carboholic is offline Member
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    BMC-84 Vrs. BMC-85

    From reading the above information, I understand the how each option may be beneficial depending on individual circumstances, but...

    In the eyes of the Interstate Commerce Commission, does either one reflect more credibility than the other?
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  7. Phillies
    Phillies is offline Member
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    BMC84 vs BMC85

    Quote Originally Posted by Carboholic
    From reading the above information, I understand the how each option may be beneficial depending on individual circumstances, but...

    In the eyes of the Interstate Commerce Commission, does either one reflect more credibility than the other?
    I don't believe so - no.
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  8. don jipping
    don jipping is offline BMC-85 Expert
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    more weight

    The FMCSA does not care if you have a 84 or a 85. Just as long as you are in compliance.

    Don
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