{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-2122.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-2122.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-2122.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-2122.html"}],"law_id":83423,"edition_id":1,"section_id":83423,"structure_id":13445,"section_number":"46.2-2122","catch_line":"Bond and letter of credit requirements of applicants for certificate","history":"2001, c. 596; 2011, cc. 881, 889; 2013, cc. 165, 582; 2017, cc. 790, 815.","full_text":"A\n\nEvery 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\n\nIf 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\n\nThe 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\n\nThe 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.","order_by":null,"text":{"0":{"id":298906,"text":"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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":298907,"text":"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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":298908,"text":"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.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":298909,"text":"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.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13445,"edition_id":1,"name":"Motor Carriers of Property -- Generally","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13444,"metadata":{},"date_created":"2026-06-26 03:44:54","date_modified":"2026-06-26 03:44:54","permalink":{"id":232517,"object_type":"structure","relational_id":13445,"identifier":"1","token":"46.2\/V\/21\/1","url":"\/46.2\/V\/21\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13444,"edition_id":1,"name":"Regulation of Property Carriers","identifier":"21","label":"chapter","depth":3,"order_by":1,"parent_id":13318,"metadata":{},"date_created":"2026-06-26 03:44:54","date_modified":"2026-06-26 03:44:54","permalink":{"id":232515,"object_type":"structure","relational_id":13444,"identifier":"21","token":"46.2\/V\/21","url":"\/46.2\/V\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13318,"edition_id":1,"name":"Motor Carriers","identifier":"V","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:38","date_modified":"2026-06-26 03:44:38","permalink":{"id":231965,"object_type":"structure","relational_id":13318,"identifier":"V","token":"46.2\/V","url":"\/46.2\/V\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85084,"structure_id":13445,"section_number":"46.2-2100","catch_line":"Definitions","url":"\/46.2-2100\/","token":"46.2\/V\/21\/1\/46.2-2100","metadata":false},{"id":68493,"structure_id":13445,"section_number":"46.2-2101","catch_line":"Exemptions from chapter","url":"\/46.2-2101\/","token":"46.2\/V\/21\/1\/46.2-2101","metadata":false},{"id":86770,"structure_id":13445,"section_number":"46.2-2102","catch_line":"Compliance with chapter required","url":"\/46.2-2102\/","token":"46.2\/V\/21\/1\/46.2-2102","metadata":false},{"id":65539,"structure_id":13445,"section_number":"46.2-2103","catch_line":"Repealed","url":"\/46.2-2103\/","token":"46.2\/V\/21\/1\/46.2-2103","metadata":false},{"id":56247,"structure_id":13445,"section_number":"46.2-2108.1","catch_line":"Disposition of funds collected","url":"\/46.2-2108.1\/","token":"46.2\/V\/21\/1\/46.2-2108.1","metadata":false},{"id":84548,"structure_id":13445,"section_number":"46.2-2108.2","catch_line":"Necessity of a permit or certificate","url":"\/46.2-2108.2\/","token":"46.2\/V\/21\/1\/46.2-2108.2","metadata":false},{"id":59213,"structure_id":13445,"section_number":"46.2-2108.3","catch_line":"Repealed","url":"\/46.2-2108.3\/","token":"46.2\/V\/21\/1\/46.2-2108.3","metadata":false},{"id":65235,"structure_id":13445,"section_number":"46.2-2108.4","catch_line":"Application; notice requirements","url":"\/46.2-2108.4\/","token":"46.2\/V\/21\/1\/46.2-2108.4","metadata":false},{"id":61323,"structure_id":13445,"section_number":"46.2-2108.5","catch_line":"Registered for fuels tax; business, professional, and occupational license taxes","url":"\/46.2-2108.5\/","token":"46.2\/V\/21\/1\/46.2-2108.5","metadata":false},{"id":68542,"structure_id":13445,"section_number":"46.2-2108.6","catch_line":"Considerations for determination of issuance of permit, or certificate","url":"\/46.2-2108.6\/","token":"46.2\/V\/21\/1\/46.2-2108.6","metadata":false},{"id":64408,"structure_id":13445,"section_number":"46.2-2109","catch_line":"Action on applications; hearings on denials and protests","url":"\/46.2-2109\/","token":"46.2\/V\/21\/1\/46.2-2109","metadata":false},{"id":80632,"structure_id":13445,"section_number":"46.2-2110","catch_line":"Repealed","url":"\/46.2-2110\/","token":"46.2\/V\/21\/1\/46.2-2110","metadata":false},{"id":87417,"structure_id":13445,"section_number":"46.2-2114.1","catch_line":"Expired","url":"\/46.2-2114.1\/","token":"46.2\/V\/21\/1\/46.2-2114.1","metadata":false},{"id":73412,"structure_id":13445,"section_number":"46.2-2115","catch_line":"Determination for issuance of permit or certificate","url":"\/46.2-2115\/","token":"46.2\/V\/21\/1\/46.2-2115","metadata":false},{"id":72828,"structure_id":13445,"section_number":"46.2-2116","catch_line":"Repealed","url":"\/46.2-2116\/","token":"46.2\/V\/21\/1\/46.2-2116","metadata":false},{"id":79672,"structure_id":13445,"section_number":"46.2-2117","catch_line":"Temporary emergency operation","url":"\/46.2-2117\/","token":"46.2\/V\/21\/1\/46.2-2117","metadata":false},{"id":75174,"structure_id":13445,"section_number":"46.2-2118","catch_line":"Issuance, expiration, and renewal of permit and certificate","url":"\/46.2-2118\/","token":"46.2\/V\/21\/1\/46.2-2118","metadata":false},{"id":69533,"structure_id":13445,"section_number":"46.2-2119","catch_line":"Repealed","url":"\/46.2-2119\/","token":"46.2\/V\/21\/1\/46.2-2119","metadata":false},{"id":71425,"structure_id":13445,"section_number":"46.2-2120","catch_line":"Filing and application fees","url":"\/46.2-2120\/","token":"46.2\/V\/21\/1\/46.2-2120","metadata":false},{"id":62672,"structure_id":13445,"section_number":"46.2-2121","catch_line":"Vehicle fees","url":"\/46.2-2121\/","token":"46.2\/V\/21\/1\/46.2-2121","metadata":false},{"id":56588,"structure_id":13445,"section_number":"46.2-2121.1","catch_line":"Declaration of for-hire operation; presumption of nonbusiness use","url":"\/46.2-2121.1\/","token":"46.2\/V\/21\/1\/46.2-2121.1","metadata":false},{"id":83423,"structure_id":13445,"section_number":"46.2-2122","catch_line":"Bond and letter of credit requirements of applicants for certificate","url":"\/46.2-2122\/","token":"46.2\/V\/21\/1\/46.2-2122","metadata":false},{"id":72841,"structure_id":13445,"section_number":"46.2-2123","catch_line":"Repealed","url":"\/46.2-2123\/","token":"46.2\/V\/21\/1\/46.2-2123","metadata":false},{"id":76034,"structure_id":13445,"section_number":"46.2-2124","catch_line":"Notice of discontinuance of service","url":"\/46.2-2124\/","token":"46.2\/V\/21\/1\/46.2-2124","metadata":false},{"id":78118,"structure_id":13445,"section_number":"46.2-2125","catch_line":"Reports, records, etc","url":"\/46.2-2125\/","token":"46.2\/V\/21\/1\/46.2-2125","metadata":false},{"id":86441,"structure_id":13445,"section_number":"46.2-2126","catch_line":"Certificate or permit holder not relieved of liability for negligence","url":"\/46.2-2126\/","token":"46.2\/V\/21\/1\/46.2-2126","metadata":false},{"id":58068,"structure_id":13445,"section_number":"46.2-2127","catch_line":"Freight bill violation","url":"\/46.2-2127\/","token":"46.2\/V\/21\/1\/46.2-2127","metadata":false},{"id":58427,"structure_id":13445,"section_number":"46.2-2128","catch_line":"Vehicle seizure; penalty","url":"\/46.2-2128\/","token":"46.2\/V\/21\/1\/46.2-2128","metadata":false},{"id":70819,"structure_id":13445,"section_number":"46.2-2129","catch_line":"Unlawful use of registration and identification markers","url":"\/46.2-2129\/","token":"46.2\/V\/21\/1\/46.2-2129","metadata":false},{"id":56166,"structure_id":13445,"section_number":"46.2-2130","catch_line":"Registration violations; penalties","url":"\/46.2-2130\/","token":"46.2\/V\/21\/1\/46.2-2130","metadata":false},{"id":75052,"structure_id":13445,"section_number":"46.2-2131","catch_line":"Violation; criminal penalties","url":"\/46.2-2131\/","token":"46.2\/V\/21\/1\/46.2-2131","metadata":false},{"id":62350,"structure_id":13445,"section_number":"46.2-2132","catch_line":"Violations; civil penalties","url":"\/46.2-2132\/","token":"46.2\/V\/21\/1\/46.2-2132","metadata":false},{"id":85153,"structure_id":13445,"section_number":"46.2-2133","catch_line":"Grounds for denying, suspending, or revoking certificates","url":"\/46.2-2133\/","token":"46.2\/V\/21\/1\/46.2-2133","metadata":false},{"id":82953,"structure_id":13445,"section_number":"46.2-2134","catch_line":"Grounds for denying, suspending, or revoking permits","url":"\/46.2-2134\/","token":"46.2\/V\/21\/1\/46.2-2134","metadata":false},{"id":71443,"structure_id":13445,"section_number":"46.2-2135","catch_line":"Altering or amending permits or certificates","url":"\/46.2-2135\/","token":"46.2\/V\/21\/1\/46.2-2135","metadata":false},{"id":69264,"structure_id":13445,"section_number":"46.2-2136","catch_line":"Suspension, revocation, and refusal to renew permit or certificate; notice and hearing","url":"\/46.2-2136\/","token":"46.2\/V\/21\/1\/46.2-2136","metadata":false},{"id":65776,"structure_id":13445,"section_number":"46.2-2137","catch_line":"Basis for reinstatement of suspended permits or certificates; reinstatement fees","url":"\/46.2-2137\/","token":"46.2\/V\/21\/1\/46.2-2137","metadata":false},{"id":81379,"structure_id":13445,"section_number":"46.2-2138","catch_line":"Basis for reissuance after revocation of permits or certificates; fees","url":"\/46.2-2138\/","token":"46.2\/V\/21\/1\/46.2-2138","metadata":false},{"id":54406,"structure_id":13445,"section_number":"46.2-2139","catch_line":"Surrender of license plate and registration card; removal by law enforcement; operation of vehicle denied","url":"\/46.2-2139\/","token":"46.2\/V\/21\/1\/46.2-2139","metadata":false},{"id":61219,"structure_id":13445,"section_number":"46.2-2140","catch_line":"Title to plates","url":"\/46.2-2140\/","token":"46.2\/V\/21\/1\/46.2-2140","metadata":false}],"previous_section":{"id":56588,"structure_id":13445,"section_number":"46.2-2121.1","catch_line":"Declaration of for-hire operation; presumption of nonbusiness use","url":"\/46.2-2121.1\/","token":"46.2\/V\/21\/1\/46.2-2121.1","metadata":false},"next_section":{"id":72841,"structure_id":13445,"section_number":"46.2-2123","catch_line":"Repealed","url":"\/46.2-2123\/","token":"46.2\/V\/21\/1\/46.2-2123","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-2122\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 596<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2011, chapters 881<\/a> and 889<\/a>; in 2013, chapters 165<\/a> and 582<\/a>; in 2017, chapters 790<\/a> and 815<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":232603,"object_type":"law","relational_id":83423,"identifier":"46.2-2122","token":"46.2\/V\/21\/1\/46.2-2122","url":"\/46.2-2122\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-2122\/","token":"46.2\/V\/21\/1\/46.2-2122","dublin_core":{"Title":"Bond and letter of credit requirements of applicants for certificate","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-2122","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every applicant for an original certificate of fitness<\/span> under this chapter shall obtain and file with the Department<\/span>, along with the application, a surety<\/span> bond<\/span> or an irrevocable letter of credit, in addition to any other bond<\/span> or letter of credit required by law<\/span>, in the amount of $50,000, which shall remain in effect for the first five years of licensure. The bond<\/span> or letter of credit shall be in a form and content acceptable to the Department<\/span>. The bond<\/span> or letter of credit shall be conditioned on a statement by the applicant that the applicant will not practice fraud<\/span>, make any fraudulent representation, or violate any provision of this chapter in the conduct of the applicant’s business. The Department<\/span> may, without holding a hearing<\/span>, suspend<\/span> the certificate of fitness<\/span> during the period that the certificate holder does not have a sufficient bond<\/span> or letter of credit on file. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If a person<\/span> suffers any of the following: (i) loss or damage in connection with the transportation<\/span> service by reason of fraud<\/span> practiced on him or fraudulent representation made to him by a certificate holder or his agent<\/span> or employee acting within the scope of employment; (ii) loss or damage by reason of a violation by a certificate holder or his agent<\/span> or employee of any provision of this chapter in connection with the transportation<\/span> service; or (iii) loss or damage resulting from a breach of a contract<\/span> entered into on or after July 1, 2002, that person<\/span> shall have a claim against the certificate holder’s bond<\/span> or letter of credit, and may recover from such bond<\/span> or letter of credit the amount awarded to such person<\/span> by final judgment<\/span> of a court<\/span> of competent jurisdiction<\/span> against the certificate holder as a result of such loss or damage up to, but not exceeding, the amount of the bond<\/span> or letter of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The certificate holder’s surety<\/span> shall notify the Department<\/span> when a claim is made against a certificate holder’s bond<\/span>, when a claim is paid and\/or when the bond<\/span> is canceled. Such notification shall include the amount of a claim and the circumstances surrounding the claim. Notification of cancellation<\/span> shall include the effective date and reason for cancellation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The surety<\/span> on any bond<\/span> filed by a certificate holder shall be released and discharged from all liability accruing on such bond<\/span> after the expiration of 60 days from the date on which the surety<\/span> files with the Department<\/span> a written request to be released and discharged. Such request shall not operate to relieve, release, or discharge the surety<\/span> from any liability already accrued or that shall accrue before the expiration of the 60-day period. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOND AND LETTER OF CREDIT REQUIREMENTS OF APPLICANTS FOR CERTIFICATE (\u00a7\n46.2-2122)\n\nA. Every applicant for an original certificate of fitness under this chapter\nshall obtain and file with the Department, along with the application, a surety\nbond or an irrevocable letter of credit, in addition to any other bond or letter\nof credit required by law, in the amount of $50,000, which shall remain in\neffect for the first five years of licensure. The bond or letter of credit shall\nbe in a form and content acceptable to the Department. The bond or letter of\ncredit shall be conditioned on a statement by the applicant that the applicant\nwill not practice fraud, make any fraudulent representation, or violate any\nprovision of this chapter in the conduct of the applicant’s business. The\nDepartment may, without holding a hearing, suspend the certificate of fitness\nduring the period that the certificate holder does not have a sufficient bond or\nletter of credit on file.\n\nB. If a person suffers any of the following: (i) loss or damage in connection\nwith the transportation service by reason of fraud practiced on him or\nfraudulent representation made to him by a certificate holder or his agent or\nemployee acting within the scope of employment; (ii) loss or damage by reason of\na violation by a certificate holder or his agent or employee of any provision of\nthis chapter in connection with the transportation service; or (iii) loss or\ndamage resulting from a breach of a contract entered into on or after July 1,\n2002, that person shall have a claim against the certificate holder’s bond\nor letter of credit, and may recover from such bond or letter of credit the\namount awarded to such person by final judgment of a court of competent\njurisdiction against the certificate holder as a result of such loss or damage\nup to, but not exceeding, the amount of the bond or letter of credit.\n\nC. The certificate holder’s surety shall notify the Department when a\nclaim is made against a certificate holder’s bond, when a claim is paid\nand\/or when the bond is canceled. Such notification shall include the amount of\na claim and the circumstances surrounding the claim. Notification of\ncancellation shall include the effective date and reason for cancellation.\n\nD. The surety on any bond filed by a certificate holder shall be released and\ndischarged from all liability accruing on such bond after the expiration of 60\ndays from the date on which the surety files with the Department a written\nrequest to be released and discharged. Such request shall not operate to\nrelieve, release, or discharge the surety from any liability already accrued or\nthat shall accrue before the expiration of the 60-day period.\n\nHISTORY: 2001, c. 596; 2011, cc. 881, 889; 2013, cc. 165, 582; 2017, cc. 790,\n815.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}