FMSCA Regulation 365.409
365.409 FMCSA action and criteria for approval.
A transfer will be approved under this section if:
(a) The transaction is not subject to 49 U.S.C. 14303; and
(b) The transaction is consistent with the public interest; however,
(c) If the transferor or transferee has an Unsatisfactory¯ safety fitness rating from DOT, the transfer may be denied. If an application is denied, the FMCSA will set forth the basis for its action in a decision or letter notice. If parties with Unsatisfactory¯ safety fitness ratings consummate a transaction pursuant to the 10-day rule at 365.405 of this part prior to the notification of FMCSA action, they do so at their own risk and subject to any conditions we may impose subsequently. Transactions that have been consummated but later are denied by the FMCSA are null and void and must be rescinded. Similarly, if applications contain false or misleading information, they are void ab initio.
