(a)(1) The Commission may issue a certificate under section 10922 or 10530 or a permit under section 10923 only if the carrier (including a motor private carrier and a foreign motor private carrier) applying for such certificate files with the Commission a bond, insurance policy, or other type of security approved by the Commission, in an amount not less than such amount as the Secretary of Transportation prescribes pursuant to, or as is required by, section 30 1 of the Motor Carrier Act of 1980, section 18 1 of the Bus Regulatory Reform Act of 1982, and the laws of the State or States in which the carrier is operating, to the extent applicable. The security must be sufficient to pay, not more than the amount of the security, for each final judgment against the carrier for bodily injury to, or death of, an individual resulting from the negligent operation, maintenance, or use of motor vehicles under the certificate or permit, or for loss or damage to property (except property referred to in paragraph (3) of this subsection), or both. A certificate or permit remains in effect only as long as the carrier satisfies the requirements of this paragraph.
(2) A motor carrier and a foreign motor private carrier and foreign motor carrier (as defined under section 10530(a)) operating in the United States when providing transportation between places in a foreign country or between a place in one foreign country and a place in another foreign country shall comply with the requirements of sections 10329 and 10330 that apply to a motor carrier providing transportation subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title. To protect the public, the Commission may require any such motor carrier to file the type of security that a motor carrier is required to file under paragraph (1) of this subsection.
(3) The Commission may require a motor common carrier providing transportation under a certificate to file with the Commission a type of security sufficient to pay a shipper or consignee for damage to property of the shipper or consignee placed in the possession of the motor common carrier as the result of transportation provided under this subtitle. A carrier required by law to pay a shipper or consignee for loss, damage, or default for which a connecting motor common carrier is responsible is subrogated, to the extent of the amount paid, to the rights of the shipper or consignee under any such security.
(b) The Commission may issue a broker's license to a person under section 10924 of this title only if the person files with the Commission a bond, insurance policy, or other type of security approved by the Commission to ensure that the transportation for which a broker arranges is provided. The license remains in effect only as long as the broker complies with this subsection.
(c)(1) The Commission may require a household goods freight forwarder providing service under a permit issued under section 10923 of this title to file with the Commission a bond, insurance policy, or other type of security approved by the Commission. The security must be sufficient to pay, not more than the amount of the security, for each final judgment against the household goods freight forwarder for bodily injury to, or death of, an individual, or loss of, or damage to, property (other than property referred to in paragraph (2) of this subsection), resulting from the negligent operation, maintenance, or use of motor vehicles by or under the direction and control of the household goods freight forwarder when providing transfer, collection, or delivery service under this subtitle.
(2) The Commission may require a household goods freight forwarder providing service under a permit or a freight forwarder to file with the Commission a bond, insurance policy, or other type of security approved by the Commission sufficient to pay, not more than the amount of the security, for loss of, or damage to, property for which the freight forwarder provides service.
(d) The Commission may determine the type and amount of security filed with it under this section.
(Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1413; Pub. L. 96–296, §29, July 1, 1980, 94 Stat. 820; Pub. L. 97–261, §18(h), Sept. 20, 1982, 96 Stat. 1121; Pub. L. 98–554, title II, §226(c)(2), (3), Oct. 30, 1984, 98 Stat. 2851; Pub. L. 99–521, §8(d), Oct. 22, 1986, 100 Stat. 2996; Pub. L. 100–690, title IX, §9111(h), Nov. 18, 1988, 102 Stat. 4534; Pub. L. 103–272, §5(m)(26), July 5, 1994, 108 Stat. 1378.)
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 10927(a)(1) | 49:315 (1st sentence related to filing security). | Feb. 4, 1887, ch. 104, 24 Stat. 379, §215; added Aug. 9, 1935, ch. 498, §1, 49 Stat. 557; July 22, 1954, ch. 563, §2, 68 Stat. 526. |
| 10927(a)(2) | 49:303(a)(11) (last sentence). | Feb. 4, 1887, ch. 104, 24 Stat. 379, §203(a)(11) (last sentence); added July 22, 1954, ch. 563, §1, 68 Stat. 526. |
| 49:315 (last sentence). | ||
| 10927(a)(3) | 49:315 (2d and 3d sentences related to filing security). | |
| 10927(b) | 49:311(c) (words after 2d comma). | Feb. 4, 1887, ch. 104, 24 Stat. 379, §211(c) (words after 2d comma); added Aug. 9, 1935, ch. 498, §1, 49 Stat. 554. |
| 10927(c)(1) | 49:1003(d) (related to filing security). | Feb. 4, 1887, ch. 104, 24 Stat. 379, §403(c), (d); added May 16, 1942, ch. 318, §1, 56 Stat. 285. |
| 10927(c)(2) | 49:1003(c) (related to filing security). | |
| 10927(d) | 49:315 (related to kind and amount of security). | |
| 49:1003(c), (d) (related to kind and amount of security). |
In subsection (a), the word “reasonable” is omitted as unnecessary. The words “rules and regulations as the Commission shall prescribe”, “rules and regulations as it shall prescribe” and “regulations” are omitted in view of section 10321(a) of the revised title giving the Interstate Commerce Commission general authority to carry out the subtitle.
In subsection (a)(1), the word “each” is inserted for clarity. The phrase “(except property referred to in paragraph (3) of this subsection)” is inserted for clarity and consistency.
In subsection (a)(2), the words “and these provisions of section 304 of this title which relate to qualifications and maximum hours of service of employees and safety of operation and equipment” in the last sentence of 49:303(a)(11) are omitted because, under section 6(e)(6)(C) of Public Law 89–670, those provisions were transferred to the Secretary of Transportation. The balance of that sentence is omitted as unnecessary in view of this subsection since it specifically gives authority to impose requirements under the circumstances referred to in the last sentence.
In subsection (a)(3), the words “motor common carrier providing transportation under a certificate” are substituted for “such common carrier” for clarity. The words “in its discretion” and “legally” are omitted as surplus. The word “service” is omitted for consistency and because the jurisdictional grant to the Commission under subchapter II of chapter 105 of the revised title is jurisdiction over transportation and service is included in the definition of “transportation”.
In subsection (b), the words “in such form and amount” are omitted as unnecessary in view of section 10321(a) of the revised title giving the Commission general authority to carry out the subtitle.
In subsection (c), the words “to prescribe reasonable rules and regulations” are omitted in view of section 10321(a) of the revised title giving the Commission general authority to carry out the subtitle. The word “providing” is substituted for “performance” for consistency.
Section 30 of the Motor Carrier Act of 1980, referred to in subsec. (a)(1), is section 30 of Pub. L. 96–296, which was formerly set out as a note below and was repealed and reenacted as section 31139 of this title by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1006, 1379, the first section of which enacted subtitles II, III, and V to X of this title.
Section 18 of the Bus Regulatory Reform Act of 1982, referred to in subsec. (a)(1), is section 18 of Pub. L. 97–261, of which subsecs. (a) to (g) were formerly set out as a note below and subsec. (h) amended subsec. (a)(1) of this section. Section 18(a)–(g) was repealed and reenacted as section 31138 of this title by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1005, 1379, the first section of which enacted subtitles II, III, and V to X of this title.
1994—Subsec. (a)(1). Pub. L. 103–272 inserted “section” before “10923”.
1988—Subsec. (a)(1). Pub. L. 100–690, §9111(h)(1), inserted first sentence and struck out former first sentence which read as follows: “The Interstate Commerce Commission may issue a certificate or permit to a motor carrier under section 10922 or 10923 of this title and a certificate of registration to a motor carrier or motor private carrier under section 10530 of this title only if the carrier files with the Commission a bond, insurance policy, or other type of security approved by the Commission, in an amount not less than such amount as the Secretary of Transportation prescribes pursuant to, or as is required by, the provisions of section 30 the Motor Carrier Act of 1980, in the case of a motor carrier of property, section 18 of the Bus Regulatory Reform Act of 1982, in the case of a motor carrier of passengers, or the laws of the State or States in which the carrier is operating, in the case of a motor private carrier.”
Subsec. (a)(2). Pub. L. 100–690, §9111(h)(2), substituted “and foreign motor carrier (as defined under section 10530(a))” for “(as such term is defined under section 10530(a)(3) of this title)”.
1986—Subsec. (c). Pub. L. 99–521 inserted “household goods” before “freight forwarder” wherever appearing in par. (1), and in par. (2) inserted “household goods” before first reference to “freight forwarder”, inserted “or a freight forwarder” after “permit”, and struck out “under this subtitle” after “provides service”.
1984—Subsec. (a)(1). Pub. L. 98–554, §226(c)(2), inserted “and a certificate of registration to a motor carrier or motor private carrier under section 10530 of this title” after “10923 of this title”, struck out “or” before “section 18 of the Bus Regulatory Reform Act of 1982”, and inserted “, or the laws of the State or States in which the carrier is operating, in the case of a motor private carrier” at end of first sentence.
Subsec. (a)(2). Pub. L. 98–554, §226(c)(3), inserted “and a foreign motor private carrier (as such term is defined under section 10530(a)(3) of this title)” after “A motor carrier”.
1982—Subsec. (a)(1). Pub. L. 97–261 inserted “, in the case of a motor carrier of property, or section 18 of the Bus Regulatory Reform Act of 1982, in the case of a motor carrier of passengers” after “Motor Carrier Act of 1980”.
1980—Subsec. (a)(1). Pub. L. 96–296 substituted “approved by the Commission, in an amount not less than such amount as the Secretary of Transportation prescribes pursuant to, or as is required by, the provisions of section 30 the Motor Carrier Act of 1980” for “approved by the Commission”.
Amendment by Pub. L. 100–690 effective Jan. 1, 1990, see section 9111(k) of Pub. L. 100–690, set out as a note under section 10530 of this title.
Amendment by Pub. L. 99–521 effective 60 days after Oct. 22, 1986, see section 15 of Pub. L. 99–521, set out as a note under section 10102 of this title.
Amendment by Pub. L. 98–554 effective May 1, 1985, except as otherwise provided, see section 226(d) of Pub. L. 98–554, set out as an Effective Date note under section 10530 of this title.
Amendment by Pub. L. 97–261 effective on 60th day after Sept. 20, 1982, see section 31(a) of Pub. L. 97–261, set out as a note under section 10101 of this title.
Section 18(a)–(g) of Pub. L. 97–261, as amended by Pub. L. 98–554, title II, §224, Oct. 30, 1984, 98 Stat. 2847, which directed Secretary of Transportation to establish regulations to require minimal levels of financial responsibility sufficient to satisfy liability amounts to be determined by Secretary covering public liability and property damage for transportation of passengers for hire by motor vehicle in the United States from place in State to place in another State, from place in State to another place in such State through place outside such State, and between place in State and place outside of United States, was repealed and reenacted as section 31138 of this title by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1005, 1379.
Section 30 of Pub. L. 96–296, as amended by Pub. L. 97–424, title IV, §406, Jan. 6, 1983, 96 Stat. 2158; Pub. L. 98–554, title II, §222, Oct. 30, 1984, 98 Stat. 2846; Pub. L. 100–690, title IX, §9112, Nov. 18, 1988, 102 Stat. 4534; Pub. L. 101–615, §23, Nov. 16, 1990, 104 Stat. 3272, which related to minimum financial responsibility for motor carriers engaged in transportation of property for hire for public liability, property damage, and environmental restoration, oil or hazardous materials, substances or wastes, penalties, reports to Congress, vehicles affected, and pertinent definitions, was repealed and reenacted as section 31139 of this title by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1006, 1379.
This section is referred to in sections 10505, 10922, 10923, 10924, 10925, 11708 of this title.