                                 CODE OF VIRGINIA

BOND AND LETTER OF CREDIT REQUIREMENTS OF APPLICANTS FOR CERTIFICATE (§
46.2-2122)

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&#8217;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&#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 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&#8217;s surety shall notify the Department when a
claim is made against a certificate holder&#8217;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.

HISTORY: 2001, c. 596; 2011, cc. 881, 889; 2013, cc. 165, 582; 2017, cc. 790,
815.