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What are the exceptions to lease agreements?
  • The Federal Motor Carrier Safety Administration (FMCSA) offers four nearly full exemptions for movements on a train, commercial zone transportation, rental companies, and trailer only leases.
  • The FMCSA offers a partial exemptions for carrier-to-carrier leases

Every rule has its exception, the leasing rules are no different. Some situations do not fit well in a typical lease. In recognition of the unique situations, the Federal Motor Carrier Safety Administration (FMCSA) offers four nearly full exemptions:

  • Movements on a train
  • Commercial zone transportation
  • Rental companies
  • Trailer only leases

Due to the unique relationships, the FMCSA offers a partial exemption for carrier-to-carrier leases. Specifically, for leases between:

  • A for-hire carrier and another for-hire carrier
  • A private carrier and a for-hire carrier

Whenever these exemptions are used, an agreement of some type needs to be in place even if the agreement is not required to have all of the items of a traditional DOT equipment lease.

The Federal Motor Carrier Safety Administration (FMCSA) however, does not exempt the agreements from the requirements of 376.11(c), which include:

  • The need to mark self-propelled commercial motor vehicles in accordance with 49 CFR 390.21.
  • The need to either carry the lease on the vehicle or a statement created by the carrier containing:
    • Equipment is being operated by the carrier,
    • Owner of the equipment’s name,
    • Date and length of the lease,
    • Any commodity restrictions, and
    • Address where the original lease is retained by the carrier.