[Code of Federal Regulations] [Title 49, Volume 4] [Revised as of October 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 49CFR365.403] [Page 828-829] TITLE 49--TRANSPORTATION DEPARTMENT OF TRANSPORTATION PART 365_RULES GOVERNING APPLICATIONS FOR OPERATING AUTHORITY--Table of Contents Subpart D_Transfer of Operating Rights Under 49 U.S.C. 10926 Sec. 365.403 Definitions. For the purposes of this part, the following definitions apply: (a) Transfer. Transfers include all transactions (i.e., the sale or lease of [[Page 829]] interstate operating rights, \1\ or the merger of two or more carriers or a carrier into a noncarrier) subject to 49 U.S.C. 10926, as well as the sale of property brokers' licenses under 49 U.S.C. 10321. --------------------------------------------------------------------------- \1\ The execution of a chattel mortgage, deed of trust, or other similar document does not constitute a transfer or require the FMCSA's approval. However, a foreclosure for the purpose of transferring an operating right to satisfy a judgment or claim against the record holder may not be effected without approval of the FMCSA. --------------------------------------------------------------------------- (b) Operating rights. Operating rights include: (1) Certificates and permits issued to motor carriers; (2) Permits issued to freight forwarders; (3) Licenses issued to property brokers; and (4) Certificates of Registration issued to motor carriers. The term also includes authority held by virtue of the gateway elimination regulations published in the Federal Register as letter-notices. (c) Certificate of registration. The evidence of a motor carrier's right to engage in interstate or foreign commerce within a single State is established by a corresponding State certificate. (d) Person. An individual, partnership, corporation, company, association, or other form of business, or a trustee, receiver, assignee, or personal representative of any of these. (e) Record holder. The person shown on the records of the FMCSA as the legal owner of the operating rights. (f) Control. A relationship between persons that includes actual control, legal control, and the power to exercise control, through or by common directors, officers, stockholders, a voting trust, a holding or investment company, or any other means. (g) Category 1 transfers. Transactions in which the person to whom the operating rights would be transferred is not an FMCSA carrier and is not affiliated with any FMCSA carrier. (h) Category 2 transfers. Transactions in which the person to whom the operating rights would be transferred is an FMCSA carrier and/or is affiliated with an FMCSA carrier. [53 FR 4852, Feb. 18, 1988, as amended at 67 FR 61821, Oct. 2, 2002]