A In my opinion, they are not. A so-called bank trust agreement (Form BMC-84) is an alternative way to comply with the broker financial security requirements. Unlike a surety bond, which must be written by a licensed insurance company, any state or federally licensed bank may post a bank trust agreement.
The terms of the bank trust agreement are very specific, however. The financial institution, called the trustee, must represent that it has receipt of the sum of $10,000 to be held in trust. It must warrant that it exclusively manages the security and the trust fund and that it has the sole discretion to invest the funds.
The financial institution cannot have any interest financial or otherwise in the broker. It must make a good faith determination that a broker has failed to pay and would be legally liable to carrier claimants on a case-by-case basis. Under the situation you describe, the alleged financial institution cannot begin to meet the broker trust fund agreement requirements. It does not actually have the funds on deposit and apparently advertises its bias in not paying claims without the brokers approval.
In addition, the fact that the financial institution may have a security interest in the brokers receivables does not satisfy the trust agreement requirements or offer any reasonable certainty that theres even $10,000 available to claimants.
If a broker does not wish to post a $10,000 cash collateral, its recourse is to file a surety bond through a licensed insurance company. If a financial institution however thats defined files broker trust agreements with the FMCSA on Form BMC-84 without requiring the posting of a $10,000 CD or cash collateral in trust, it could be violating state insurance laws and federal transportation regulations.
you have described it, I do not believe the proposed brokers trust
fund agreement complies with the law or that the federal regulators,
if asked, would approve the arrangement you described. I certainly would
not recommend my clients use a broker that relies on such an agreement.