                                 CODE OF VIRGINIA

BOND AND LETTER OF CREDIT REQUIREMENTS (§ 46.2-2011.9)

A. Every applicant for an original certificate 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 $25,000, which shall remain in effect for the
first three 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&#8217;s business. The Department may,
without holding a hearing, suspend the certificate during the period that the
certificate holder does not have a sufficient bond or letter of credit on file.

B. Every applicant for an original license pursuant to 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 $25,000. 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&#8217;s business. The Department
may, without holding a hearing, suspend the license during the period that the
licensee does not have a sufficient bond or letter of credit on file.

C. 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 licensee or certificate holder or his
agent or employee acting within the scope of employment; (ii) loss or damage by
reason of a violation by a licensee or 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 the effective date of this act, that person shall have a claim
against the licensee or certificate holder&#8217;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 licensee or
certificate holder as a result of such loss or damage up to, but not exceeding,
the amount of the bond or letter of credit.

D. The licensee or certificate holder&#8217;s surety shall notify the Department
when a claim is made against a licensee or certificate holder&#8217;s bond, when
a claim is paid and 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.

E. The surety on any bond filed by a licensee or 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 which shall accrue before the expiration of the 60-day
period.

HISTORY: 2001, c. 596; 2013, cc. 165, 582.