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Pacific Financial offers four
basic programs to Brokers requesting BMC-85 Trust
Agreements. The success of all such options is dependent
entirely upon careful management of claims activity, the
principal cost component of any trust administration
process. Therefore, with each such program, Pacific
Financial requires a minimum annual administrative fee of
$550 (which may be offset by accumulation of interest in
Plan 1).
1. Name:“CASH PLAN 1”
Description: The Broker submits $10,000 in cash to
collateralize a BMC-85 Trust Fund.
Qualifications: Good standing with the FMCSA. No
particular credit requirements.
Cost: $10,550
initially,
comprise of a one time $550
administrative fee for the first year plus
the $10,000
collateralization
payment. For each subsequent year earned interest
shall be deemed to
offset the administrative fee (for an effective annual yield
of 5.5%).
2. Name:“LETTER OF CREDIT PLAN 2”
Description: The Broker submits no cash collateral,
but arranges for a $10,000 Irrevocable Standby Letter of
Credit issued by a federally insured bank or credit union,
naming Pacific Financial as beneficiary. A $550 annual
administration fee shall apply.
Qualifications:
Good standing with the FMCSA. No particular credit
requirements.
Cost: $550 annual administration fee
due at
the beginning of
each contract year, plus a $10,000 Letter
of Credit. Should
legal liability necessitate claim payouts a nominal service
fee may be charged depending upon the ease of negotiating
each draft drawn on the Letter of Credit.
3.
Name: “ASSET LIQUIDATION PLAN 3”
Description: The Broker submits no cash collateral,
but authorizes Pacific Financial to arrange for the
liquidation of $10,000 in receivables sold and assigned on a
rotating basis for statutory purposes. If approved, the
Broker pays a $950 administrative fee, and executes a
special Collateral Agreement. Pacific Financial may demand
physical delivery of specific freight bills at any time, but
usually does so only in response to unsatisfied legal
liability.
Qualifications: Good
standing with the FMCSA and excellent credit (a principal
owner or director of the company may be considered as an
individual for credit purposes as long as documents are
submitted to verify their ownership interest). Pacific
Financial will require at least one irrevocable personal
guarantee.
Cost: $950
annual administration fees due at the beginning of each
contract year.
4. Name: “installment
plan 4”
Description: The
Broker submits an
initial deposit of
$500 as partial
collateralization of
the Trust Account.
The Broker also agrees
to pay
$500 a
month until
$10,000 shall
accrue to
replace that
component of
the Trust Account
secured initially
by the sale
of receivables.
Accordingly,
the Broker
executes a Collateral Agreement
to arrange for the liquidation of
receivables in an amount equal to the difference between
cash on deposit and $10,000. Should
all payments be made on a timely basis, subsequent
administrative fees will be reduced relative to accumulated
cash on deposit. Once the $10,000 has
been on deposit for one full year earned interest shall be
deemed to offset the administrative fee
thereafter.
Qualifications: Good
standing with the FMCSA and good credit responsibility.
Cost:
$1,450
initially,
comprised of the
$500 initial
deposit (initial
deposits may vary depending upon credit qualifications) plus
the $950
administrative fee for
the first
year. Renewal fees include
a $750 fee for
the second
year; a $550 fee for the third year and
no renewal fee for subsequent
years thereafter,
assuming all
monthly $500
collateralization installment payments
have been paid as
agreed.
* All products and information are offered thought Pacific
Financial
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