For covered equipment leasing arrangements, FMCSA rules require a written lease and specific terms protecting both the authorized carrier and equipment owner. These requirements are especially important when an owner-operator’s settlement includes deductions, insurance charges, or an escrow balance. Coverage and regulatory exemptions must be checked before applying the rules. [1]
Start with the written agreement
Section 376.11 requires a written lease meeting Section 376.12, together with equipment receipts, identification, and records as specified. Keep the signed agreement and amendments. A settlement sheet may help explain a deduction, but it is not a substitute for the required lease terms. [1]
First identify whether the other business is acting as the authorized carrier in this arrangement. The distinctions among a motor carrier, broker, and freight forwarder matter when identifying the legal relationship.
Compensation and charge-backs must be explained
The lease must address compensation and payment timing. The rule generally requires payment within fifteen days after submission of necessary delivery documents. Charge-back items and how their amounts are computed must be specified, and the owner must have the documents needed to verify charges. [2]
For a disputed deduction, compare three items: the lease authorization, the calculation, and the supporting invoice or record. Ask for an explanation of a particular charge rather than requesting an undifferentiated refund of every deduction.
Insurance responsibilities need separate attention
The lease must state the carrier’s public-protection insurance obligation and responsibility for other coverage. Insurance charge-backs must be specified. When insurance is purchased through the carrier, the rule provides for certificates and policy copies on request. Cargo or property-damage deductions require the specified written explanation and itemization before deduction. [2]
Read the deductible and coverage terms before assuming that a charge purchases protection for every loss. Preserve certificates, policies, and the actual damage calculation.
Escrow requires accounting and a timely return
The lease must identify the escrow amount, permitted uses, accounting, and return conditions. Interest must be paid at least quarterly under the prescribed calculation. Owners may demand transaction accounting. The remaining fund must be returned no later than forty-five days after termination, with final deductions and accounting governed by the rule. [2]
Build a useful dispute file
Keep the termination date, settlement statements, escrow ledger, invoices, written requests, and responses together. Identify each missing amount and the lease provision involved. A contractual payment dispute differs from a DataQs request to review safety data; using that system does not resolve a settlement or escrow claim.
Primary sources
Sources checked: October 31, 2026.