The road freight transport company guarantee

You have aroad freight transport companythatdoes not pay your invoices? Did you know that thesetransport companiesare obliged to place a guarantee with a financial institution in order to honour their financial commitments?

  On their formation transport companies haveobligationsimposed byEuropesince 2009:

1. The company must be established in astableandeffectivemanner in a Member State;
2. Honorability: Belgium defines this notion in itslaw of 15 July 2013;
3. Having therequired professional capacity: certificate issued by the Minister of Transport (FPS Mobility and Transport) after the applicant passes an examination.
4. Having theappropriate financial capacity.

Focus on the fourth condition: appropriate financial capacity.

In order for atransport companyto be able to meet its financial obligations at any time, that company must put up aguaranteeaccording to the number of motor vehicles that it uses for which national transport licences have been issued. This bail may be as much as9,000 EUR when a single motor vehicle is usedand5,000 EUR for each additional vehicle used. Thefinancial agencyplacing joint and several guarantee will issue a certificate attesting that thefinancial capacityof that company is in fact real. The various agencies able to place guarantee are listed in theRoyal Decree of 22 May 2014. It may concern:

• A bank;
• An approved insurance company;
• A cooperative collective guarantee company approved by the Minister of Finance for bonds for entrepreneurs, licence-holders and tenderers for public works contracts.

Thisguaranteeis set aside in its entirety to guarantee the debts of the company if thedebtsbecome due and payable during the period of 365 days preceding the date of call on bail. Thisguaranteeextends to all the accessories of the principal debt and itsrecovery. In order to call on this bail theunpaid creditorsmust give notice of the call on the joint and several guarantee, attaching acourt decision, whether or not non-enforceable, delivered in Belgium and charged to the company. This call on bail must be effected byregistered letter. In order to identify the financial entity placing your debtor’s joint and several guarantee you will have to contactFPS Mobility and Transportwho will tell you the identity of the agency to contact.

Calls on the bail: how does it work?

Calls on bailare processed according to the date of consignment for delivery of the registered letter. Thus, if two creditors call on the bail on the same day, a proportional split is made. If thejoint and several guaranteedoes not oppose the call on bail it is bound to pay the creditor within 60 days of receipt of the call. If thebailiswhollyorpartiallyprepaid thejoint and several guaranteemust immediately notify the minister by registered letter or by e-mail, stating the amounts paid and all the other creditors named in writing. The minister will then inform the prepayment company in question and order settlement or completion of the bail within a period of 30 days. If your debtor is declaredbankrupt, the rules and time limits are somewhat different. We suggest that you consult the Royal Decree of 22/05/2014 mentioned earlier, which explains the various steps to be taken.   You have atransport companythat is not paying you?Contact usby e-mail (info@tcm.be) or by telephone (+32 16 74 52 00), we will do all we can to help you inthe amicable phase of recovery. If that should then prove to be impossible we will apply all our experience to guide you through the appropriate legal procedures.  

You have aroad freight transport companythatdoes not pay your invoices? Did you know that thesetransport companiesare obliged to place a guarantee with a financial institution in order to honour their financial commitments?

  On their formation transport companies haveobligationsimposed byEuropesince 2009:

1. The company must be established in astableandeffectivemanner in a Member State;
2. Honorability: Belgium defines this notion in itslaw of 15 July 2013;
3. Having therequired professional capacity: certificate issued by the Minister of Transport (FPS Mobility and Transport) after the applicant passes an examination.
4. Having theappropriate financial capacity.

Focus on the fourth condition: appropriate financial capacity.

In order for atransport companyto be able to meet its financial obligations at any time, that company must put up aguaranteeaccording to the number of motor vehicles that it uses for which national transport licences have been issued. This bail may be as much as9,000 EUR when a single motor vehicle is usedand5,000 EUR for each additional vehicle used. Thefinancial agencyplacing joint and several guarantee will issue a certificate attesting that thefinancial capacityof that company is in fact real. The various agencies able to place guarantee are listed in theRoyal Decree of 22 May 2014. It may concern:

• A bank;
• An approved insurance company;
• A cooperative collective guarantee company approved by the Minister of Finance for bonds for entrepreneurs, licence-holders and tenderers for public works contracts.

Thisguaranteeis set aside in its entirety to guarantee the debts of the company if thedebtsbecome due and payable during the period of 365 days preceding the date of call on bail. Thisguaranteeextends to all the accessories of the principal debt and itsrecovery. In order to call on this bail theunpaid creditorsmust give notice of the call on the joint and several guarantee, attaching acourt decision, whether or not non-enforceable, delivered in Belgium and charged to the company. This call on bail must be effected byregistered letter. In order to identify the financial entity placing your debtor’s joint and several guarantee you will have to contactFPS Mobility and Transportwho will tell you the identity of the agency to contact.

Calls on the bail: how does it work?

Calls on bailare processed according to the date of consignment for delivery of the registered letter. Thus, if two creditors call on the bail on the same day, a proportional split is made. If thejoint and several guaranteedoes not oppose the call on bail it is bound to pay the creditor within 60 days of receipt of the call. If thebailiswhollyorpartiallyprepaid thejoint and several guaranteemust immediately notify the minister by registered letter or by e-mail, stating the amounts paid and all the other creditors named in writing. The minister will then inform the prepayment company in question and order settlement or completion of the bail within a period of 30 days. If your debtor is declaredbankrupt, the rules and time limits are somewhat different. We suggest that you consult the Royal Decree of 22/05/2014 mentioned earlier, which explains the various steps to be taken.   You have atransport companythat is not paying you?Contact usby e-mail (info@tcm.be) or by telephone (+32 16 74 52 00), we will do all we can to help you inthe amicable phase of recovery. If that should then prove to be impossible we will apply all our experience to guide you through the appropriate legal procedures.