What Is an Owner Operator Lease Agreement

Simply put, the term rental means paying a fee for the use of someone else`s equipment. When renting a truck, the lease can be valid for years or month after month. Depending on the lease, you can return the truck after your contract expires or decide to purchase the equipment. §376.31 Replacement of devices. Authorized joint carriers may exchange equipment under the following conditions: (a) Exchange Agreement — There must be a written contract, lease or other agreement that provides for replacement and specifically describes the equipment to be exchanged. This written agreement specifies the specific exchange points, the way in which the equipment is to be used and the remuneration for this use. The interbank agreement shall be signed by the parties or their representatives. (b) Operator Authority — Carriers participating in the exchange are registered with the Secretary to carry the goods at the point where the physical exchange takes place. (c) Bill of lading — Trade by exchange shall be effected by means of bills of lading of the carrier of origin. The tariffs calculated and the revenues collected are recorded in the same way as if there had been no exchange. Charges for the use of the replaced equipment shall be separated from the allocation of common tariffs or the proportions of those tariffs borne by carriers by the application of local or proportional tariffs.

(d) Identification of equipment — The authorized common carrier receiving the equipment shall identify the equipment it operates in the interchange service as follows: (d)(1) The authorized common carrier shall identify the engines in accordance with the fmcsA requirements of Part 49 CFR, Part 390 of this Chapter (Vehicle Identification). Before relinquishing possession of the equipment, the carrier removes all marks indicating that it is the operator. (d) 2. Unless a copy of the transfer agreement is placed on the equipment, the authorised common carrier shall keep with each vehicle, during the exchange service, a declaration that it operates the equipment. The declaration shall also indicate the devices by reference to the registration number of the company or State and indicate the specific exchange point, the date and time at which it assumes responsibility for the equipment and the use of the equipment. This declaration is signed by the parties to the exchange agreement or their agents. The requirements of this paragraph shall not apply where the equipment to be used in transfer traffic consists solely of trailers or semi-trailers. (d) Authorised carriers under common ownership and control may exchange equipment with each other without complying with the requirements of point (d)(1) of this Section as regards the withdrawal of equipment identification.

(e) Connecting carriers considered owners — An authorized carrier that receives equipment as part of a transit movement is deemed to be the owner of the equipment for the purpose of leasing the equipment to other authorized carriers in order to promote carriage to the place of destination or the return of the equipment once the movement is complete. Unlike the other two options where you rent to get a truck, renting to one carrier means that you provide your services and the trucks you already own to another freight forwarder. By renting it to a carrier, you enter into an agreement to provide the service of your truck for freight transportation for the company. §376.2 Definitions. (a) Authorized Carrier — One or more persons acting in accordance with the provisions of 49 U.S. § 49.C. 13901 and 13902 are entitled to transportation goods as road transportation operators. (b) `equipment` means a motor vehicle, lorry, tractor, semi-trailer, complete trailer, any combination of such equipment and any other type of equipment used by authorised carriers for the carriage of leased goods. (c) Exchange — The receipt of goods from a common road carrier by another such carrier at a point where both carriers can be used to continue a transit movement. (d) Owner — A person (1) who has been granted ownership of the equipment, or (2) who has the right to use the equipment exclusively without title, or (3) who has legal possession of equipment registered and authorized in a state on behalf of that person. (e) Leasing — A contract or arrangement whereby the owner grants an authorized carrier, for a specified period, the use of equipment with or without a driver for use in the regulated transportation of goods in exchange for compensation. (f) Lessor — In a lease agreement, the party granting others the use of the equipment with or without a driver.

g) Tenants — In a lease agreement, the party acquires the use of the equipment with or without another`s driver. h) Sublease — A written contract in which the lessee grants another person the use of the equipment rented with or without a driver. (i) Addendum — Supplement to an existing lease that takes effect only after it has been signed by the lessor and the lessee. (j) Private carrier — a person who is not a motor carrier and who transports goods by motor vehicle in the course of international or foreign trade, if (1) that person is the owner, lessee or guarantor of the property to be transported; and (2) the property is transported for sale, rental, rental or deposit or to promote a commercial enterprise. (k) Consignor — A person who sends or receives goods transported in the course of interstate or foreign trade. (l) Trust fund — money deposited by the lessor with a third party or the licensee to secure performance, reimburse advances, cover repair costs, process claims, manage the costs of licensing and government approval and, for any other purpose mutually agreed between the lessor and the lessee. (m) Immobilization — The possession of a trailer with or without engine and driver by a consignor or consignee beyond the free time provided for the transfer in circumstances which are not due to the performance of the carrier. [44 FR 4681, 23 January 1979. Renamed to 61 FR 54707, 21 October 1996, amended to 62 FR 15424, 1 April 1997] §376.22 Exemption for the rental of private carriers and the rental between authorized carriers. Regardless of the rental terms set out in this Part, an authorized carrier may lease equipment to or from another authorized carrier, or a private carrier may lease equipment to an authorized carrier under the following conditions: (a) Identification of equipment requirements in § 376.11(c) must be met; (b) the lessor must be the owner of the equipment or hold it under a lease agreement; (c) between the authorized carriers, or there is a written agreement between the private carrier and the authorized carrier on the equipment as follows: (c) (1) It shall be signed by the parties or their authorized representatives.

c) (2) It shall provide that control and responsibility for the operation of the Equipment shall be vested in the Lessor from the time of possession by the Renter and that the receipt required under § 376.11 (b) until: (i) possession of the Equipment is returned to the Lessor and the receipt required under section 376.11 (b) is received by the Authorized Carrier; or (ii) in the event that the agreement exists between Authorized Carriers, ownership of the Equipment will be returned to the Lessor or transferred to another Authorized Carrier as part of an exchange of Equipment. (c) (3) A copy of the contract shall be carried in the appliances as long as they are in the possession of the lessee. (c) (4) Nothing in this Division prohibits the use of a master lease by authorized carriers, private carriers and any other entity engaged in lease transactions under this section if a copy of the master lease is carried in the equipment while in the lessee`s possession and the master lease complies with the provisions of this section and the receipts are exchanged in accordance with section 376.11 ( b); and when equipment records are prepared and maintained in accordance with § 376.11 (d). (d) Authorised carriers and private carriers with common ownership and control may lease equipment to each other under this Section without meeting the requirements of point (a) of this Section with regard to the identification of equipment and the requirements of points (c)(2) and (c)(4) of this Section with regard to equipment inputs. The leasing of equipment between such carriers is subject to all other requirements of this Section. .