Code of Virginia
Chapter 21 - Regulation of Property Carriers
§ 46.2-2122. Bond and letter of credit requirements of applicants for certificate

A. Every applicant for an original certificate of fitness under this chapter shall obtain and file with the Department, along with the application, a surety bond or an irrevocable letter of credit, in addition to any other bond or letter of credit required by law, in the amount of $50,000, which shall remain in effect for the first five years of licensure. The bond or letter of credit shall be in a form and content acceptable to the Department. The bond or letter of credit shall be conditioned on a statement by the applicant that the applicant will not practice fraud, make any fraudulent representation, or violate any provision of this chapter in the conduct of the applicant's business. The Department may, without holding a hearing, suspend the certificate of fitness during the period that the certificate holder does not have a sufficient bond or letter of credit on file.
B. If a person suffers any of the following: (i) loss or damage in connection with the transportation service by reason of fraud practiced on him or fraudulent representation made to him by a certificate holder or his agent or employee acting within the scope of employment; (ii) loss or damage by reason of a violation by a certificate holder or his agent or employee of any provision of this chapter in connection with the transportation service; or (iii) loss or damage resulting from a breach of a contract entered into on or after July 1, 2002, that person shall have a claim against the certificate holder's bond or letter of credit, and may recover from such bond or letter of credit the amount awarded to such person by final judgment of a court of competent jurisdiction against the certificate holder as a result of such loss or damage up to, but not exceeding, the amount of the bond or letter of credit.
C. The certificate holder's surety shall notify the Department when a claim is made against a certificate holder's bond, when a claim is paid and/or when the bond is canceled. Such notification shall include the amount of a claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation.
D. The surety on any bond filed by a certificate holder shall be released and discharged from all liability accruing on such bond after the expiration of 60 days from the date on which the surety files with the Department a written request to be released and discharged. Such request shall not operate to relieve, release, or discharge the surety from any liability already accrued or that shall accrue before the expiration of the 60-day period.
2001, c. 596; 2011, cc. 881, 889; 2013, cc. 165, 582; 2017, cc. 790, 815.

Structure Code of Virginia