Except as provided in subsection (b), a carrier providing transportation or service subject to jurisdiction under this part shall give up possession at the destination of the property transported by it only when payment for the transportation or service is made.

A carrier providing transportation of a shipment of household goods shall give up possession of the household goods being transported at the destination upon payment of—

(1) Regulations.— Under regulations of the Secretary governing the payment for transportation and service and preventing discrimination, those carriers may give up possession at destination of property transported by them before payment for the transportation or service. The regulations of the Secretary may provide for weekly or monthly payment for transportation provided by motor carriers and for periodic payment for transportation provided by water carriers.

(2) Extensions of credit to governmental entities.— Such a carrier (including a motor carrier being used by a household goods freight forwarder) may extend credit for transporting property for the United States Government, a State, a territory or possession of the United States, or a political subdivision of any of them.

A carrier providing transportation of a shipment of household goods shall give up possession of the household goods being transported at the destination upon payment of—

(A) In general.—A carrier providing transportation of a shipment of household goods shall give up possession of the household goods being transported at the destination upon payment of— (i) 100 percent of the charges contained in a binding estimate provided by the carrier; (ii) not more than 110 percent of the charges contained in a nonbinding estimate provided by the carrier; or (iii) in the case of a partial delivery of the shipment, the prorated percentage of the charges calculated in accordance with subparagraph (B).

(B) Calculation of prorated charges.— For purposes of subparagraph (A)(iii), the prorated percentage of the charges shall be the percentage of the total charges due to the carrier as described in clause (i) or (ii) of subparagraph (A) that is equal to the percentage of the weight of that portion of the shipment delivered to the total weight of the shipment.

(C) Post-contract services.— Subparagraph (A) does not apply to additional services requested by a shipper after the contract of service is executed that were not included in the estimate.

(D) Impracticable operations.— Subparagraph (A) does not apply to impracticable operations, as defined by the applicable carrier tariff, except that the charges collected at delivery for such operations shall not exceed 15 percent of all other charges due at delivery. Any remaining charges due shall be paid within 30 days after the carrier presents its freight bill.

(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 873; amended Pub. L. 109–59, title IV, § 4203, Aug. 10, 2005, 119 Stat. 1752.)