{"law_id":"769943","section_number":"46.2-2011.9","catch_line":"Bond and letter of credit requirements","history":"2001, c. 596; 2013, cc. 165, 582.","order_by":null,"metadata":false,"court_decisions":{},"official_url":"http:\/\/law.lis.virginia.gov\/vacode\/46.2-2011.9\/","refers_to":false,"url":"\/46.2-2011.9\/","token":"46.2\/V\/20\/1\/46.2-2011.9","structure":{"1":{"id":"255","name":"Motor Carriers Of Passengers -- Generally","identifier":"1","label":"article","url":"\/46.2\/V\/20\/1\/"},"2":{"id":"254","name":"Regulation Of Passenger Carriers","identifier":"20","label":"chapter","url":"\/46.2\/V\/20\/"},"3":{"id":"110","name":"Motor Carriers","identifier":"V","label":"subtitle","url":"\/46.2\/V\/"},"4":{"id":"10","name":"Motor Vehicles","identifier":"46.2","label":"title","url":"\/46.2\/"}},"referred_to_by":false,"edition_id":"11","section_id":"769943","structure_id":"255","full_text":"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’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.\r\rB 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’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.\r\rC 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’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.\r\rD The licensee or certificate holder’s surety shall notify the Department when a claim is made against a licensee or certificate holder’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.\r\rE 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.\r\r","text":{"0":{"id":"2481820","text":"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’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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1},"1":{"id":"2481821","text":"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’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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1},"2":{"id":"2481822","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 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’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.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1},"3":{"id":"2481823","text":"The licensee or certificate holder’s surety shall notify the Department when a claim is made against a licensee or certificate holder’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.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1},"4":{"id":"2481824","text":"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.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1}},"ancestry":{"1":{"id":"255","name":"Motor Carriers Of Passengers -- Generally","identifier":"1","label":"article","url":"\/46.2\/V\/20\/1\/"},"2":{"id":"254","name":"Regulation Of Passenger Carriers","identifier":"20","label":"chapter","url":"\/46.2\/V\/20\/"},"3":{"id":"110","name":"Motor Carriers","identifier":"V","label":"subtitle","url":"\/46.2\/V\/"},"4":{"id":"10","name":"Motor Vehicles","identifier":"46.2","label":"title","url":"\/46.2\/"}},"structure_contents":{"0":{"id":"796489","structure_id":"255","section_number":"46.2-2000","catch_line":"Definitions","url":"\/46.2-2000\/","token":"46.2\/V\/20\/1\/46.2-2000"},"1":{"id":"795839","structure_id":"255","section_number":"46.2-2000.1","catch_line":"Vehicles excluded from operation of chapter","url":"\/46.2-2000.1\/","token":"46.2\/V\/20\/1\/46.2-2000.1"},"2":{"id":"791126","structure_id":"255","section_number":"46.2-2000.2","catch_line":"Repealed","url":"\/46.2-2000.2\/","token":"46.2\/V\/20\/1\/46.2-2000.2"},"3":{"id":"779310","structure_id":"255","section_number":"46.2-2000.3","catch_line":"Disposition of funds collected","url":"\/46.2-2000.3\/","token":"46.2\/V\/20\/1\/46.2-2000.3"},"4":{"id":"767211","structure_id":"255","section_number":"46.2-2001","catch_line":"Regulation by Department; reports; prevention of discrimination; regulation of leasing of motor vehicles","url":"\/46.2-2001\/","token":"46.2\/V\/20\/1\/46.2-2001"},"5":{"id":"791849","structure_id":"255","section_number":"46.2-2001.1","catch_line":"License, permit, or certificate required","url":"\/46.2-2001.1\/","token":"46.2\/V\/20\/1\/46.2-2001.1"},"6":{"id":"765130","structure_id":"255","section_number":"46.2-2001.2","catch_line":"Identification marker required","url":"\/46.2-2001.2\/","token":"46.2\/V\/20\/1\/46.2-2001.2"},"7":{"id":"770105","structure_id":"255","section_number":"46.2-2001.3","catch_line":"Application; notice requirements","url":"\/46.2-2001.3\/","token":"46.2\/V\/20\/1\/46.2-2001.3"},"8":{"id":"767070","structure_id":"255","section_number":"46.2-2002","catch_line":"Repealed","url":"\/46.2-2002\/","token":"46.2\/V\/20\/1\/46.2-2002"},"9":{"id":"782375","structure_id":"255","section_number":"46.2-2005","catch_line":"Action on applications; hearings on denials and protests","url":"\/46.2-2005\/","token":"46.2\/V\/20\/1\/46.2-2005"},"10":{"id":"771185","structure_id":"255","section_number":"46.2-2005.1","catch_line":"Determination for issuance for license, permit, or certificate","url":"\/46.2-2005.1\/","token":"46.2\/V\/20\/1\/46.2-2005.1"},"11":{"id":"772316","structure_id":"255","section_number":"46.2-2006","catch_line":"Repealed","url":"\/46.2-2006\/","token":"46.2\/V\/20\/1\/46.2-2006"},"12":{"id":"780389","structure_id":"255","section_number":"46.2-2011","catch_line":"Considerations for determination of issuance of license or certificate","url":"\/46.2-2011\/","token":"46.2\/V\/20\/1\/46.2-2011"},"13":{"id":"783902","structure_id":"255","section_number":"46.2-2011.1","catch_line":"Issuance of temporary authority","url":"\/46.2-2011.1\/","token":"46.2\/V\/20\/1\/46.2-2011.1"},"14":{"id":"767793","structure_id":"255","section_number":"46.2-2011.10","catch_line":"Advertisements","url":"\/46.2-2011.10\/","token":"46.2\/V\/20\/1\/46.2-2011.10"},"15":{"id":"773027","structure_id":"255","section_number":"46.2-2011.11","catch_line":"Established place of business","url":"\/46.2-2011.11\/","token":"46.2\/V\/20\/1\/46.2-2011.11"},"16":{"id":"768847","structure_id":"255","section_number":"46.2-2011.12","catch_line":"Transportation of baggage with passengers","url":"\/46.2-2011.12\/","token":"46.2\/V\/20\/1\/46.2-2011.12"},"17":{"id":"767593","structure_id":"255","section_number":"46.2-2011.13","catch_line":"Stowing of baggage, parcels, etc","url":"\/46.2-2011.13\/","token":"46.2\/V\/20\/1\/46.2-2011.13"},"18":{"id":"792829","structure_id":"255","section_number":"46.2-2011.14","catch_line":"Notice of abandonment of service","url":"\/46.2-2011.14\/","token":"46.2\/V\/20\/1\/46.2-2011.14"},"19":{"id":"773471","structure_id":"255","section_number":"46.2-2011.15","catch_line":"Department may seek judgment for refunds due public and collect and distribute same","url":"\/46.2-2011.15\/","token":"46.2\/V\/20\/1\/46.2-2011.15"},"20":{"id":"787810","structure_id":"255","section_number":"46.2-2011.16","catch_line":"Reports, records, etc","url":"\/46.2-2011.16\/","token":"46.2\/V\/20\/1\/46.2-2011.16"},"21":{"id":"792884","structure_id":"255","section_number":"46.2-2011.17","catch_line":"Certificate, license, or permit holder not relieved of liability for negligence","url":"\/46.2-2011.17\/","token":"46.2\/V\/20\/1\/46.2-2011.17"},"22":{"id":"765610","structure_id":"255","section_number":"46.2-2011.18","catch_line":"Violation by passengers; misdemeanor; ejection","url":"\/46.2-2011.18\/","token":"46.2\/V\/20\/1\/46.2-2011.18"},"23":{"id":"774087","structure_id":"255","section_number":"46.2-2011.19","catch_line":"Vehicle seizure; penalty","url":"\/46.2-2011.19\/","token":"46.2\/V\/20\/1\/46.2-2011.19"},"24":{"id":"779690","structure_id":"255","section_number":"46.2-2011.2","catch_line":"Temporary emergency operation","url":"\/46.2-2011.2\/","token":"46.2\/V\/20\/1\/46.2-2011.2"},"25":{"id":"791073","structure_id":"255","section_number":"46.2-2011.20","catch_line":"Unlawful use of registration and identification markers","url":"\/46.2-2011.20\/","token":"46.2\/V\/20\/1\/46.2-2011.20"},"26":{"id":"776382","structure_id":"255","section_number":"46.2-2011.21","catch_line":"Registration and identification violations; penalties","url":"\/46.2-2011.21\/","token":"46.2\/V\/20\/1\/46.2-2011.21"},"27":{"id":"785522","structure_id":"255","section_number":"46.2-2011.22","catch_line":"Violation; criminal penalties","url":"\/46.2-2011.22\/","token":"46.2\/V\/20\/1\/46.2-2011.22"},"28":{"id":"775020","structure_id":"255","section_number":"46.2-2011.23","catch_line":"Violations; civil penalties","url":"\/46.2-2011.23\/","token":"46.2\/V\/20\/1\/46.2-2011.23"},"29":{"id":"785546","structure_id":"255","section_number":"46.2-2011.24","catch_line":"Grounds for denying, suspending, or revoking licenses, permits, or certificates","url":"\/46.2-2011.24\/","token":"46.2\/V\/20\/1\/46.2-2011.24"},"30":{"id":"787027","structure_id":"255","section_number":"46.2-2011.25","catch_line":"Altering or amending licenses, permits, or certificates","url":"\/46.2-2011.25\/","token":"46.2\/V\/20\/1\/46.2-2011.25"},"31":{"id":"770571","structure_id":"255","section_number":"46.2-2011.26","catch_line":"Suspension, revocation, and refusal to renew licenses, permits, or certificates; notice and hearing","url":"\/46.2-2011.26\/","token":"46.2\/V\/20\/1\/46.2-2011.26"},"32":{"id":"775305","structure_id":"255","section_number":"46.2-2011.27","catch_line":"Basis for reinstatement of suspended licenses, permits, or certificates; reinstatement fees","url":"\/46.2-2011.27\/","token":"46.2\/V\/20\/1\/46.2-2011.27"},"33":{"id":"785777","structure_id":"255","section_number":"46.2-2011.28","catch_line":"Basis for relicensure after revocation of licenses, permits, or certificates; fees","url":"\/46.2-2011.28\/","token":"46.2\/V\/20\/1\/46.2-2011.28"},"34":{"id":"767450","structure_id":"255","section_number":"46.2-2011.29","catch_line":"Surrender of identification marker, license plate, and registration card; removal by law enforcement; operation of vehicle denied","url":"\/46.2-2011.29\/","token":"46.2\/V\/20\/1\/46.2-2011.29"},"35":{"id":"785590","structure_id":"255","section_number":"46.2-2011.3","catch_line":"Issuance, expiration, and renewal of license, permit, and certificate","url":"\/46.2-2011.3\/","token":"46.2\/V\/20\/1\/46.2-2011.3"},"36":{"id":"795073","structure_id":"255","section_number":"46.2-2011.30","catch_line":"No property rights in highways conferred by chapter","url":"\/46.2-2011.30\/","token":"46.2\/V\/20\/1\/46.2-2011.30"},"37":{"id":"791927","structure_id":"255","section_number":"46.2-2011.31","catch_line":"Licenses, taxes, etc., not affected","url":"\/46.2-2011.31\/","token":"46.2\/V\/20\/1\/46.2-2011.31"},"38":{"id":"776067","structure_id":"255","section_number":"46.2-2011.32","catch_line":"Title to plates and markers","url":"\/46.2-2011.32\/","token":"46.2\/V\/20\/1\/46.2-2011.32"},"39":{"id":"793412","structure_id":"255","section_number":"46.2-2011.4","catch_line":"Conversion of contract bus certificates","url":"\/46.2-2011.4\/","token":"46.2\/V\/20\/1\/46.2-2011.4"},"40":{"id":"785827","structure_id":"255","section_number":"46.2-2011.5","catch_line":"Filing and application fees","url":"\/46.2-2011.5\/","token":"46.2\/V\/20\/1\/46.2-2011.5"},"41":{"id":"768639","structure_id":"255","section_number":"46.2-2011.6","catch_line":"Vehicle fees","url":"\/46.2-2011.6\/","token":"46.2\/V\/20\/1\/46.2-2011.6"},"42":{"id":"781929","structure_id":"255","section_number":"46.2-2011.7","catch_line":"Certificate holders must provide services","url":"\/46.2-2011.7\/","token":"46.2\/V\/20\/1\/46.2-2011.7"},"43":{"id":"773348","structure_id":"255","section_number":"46.2-2011.8","catch_line":"Transfers of certificates of public convenience and necessity","url":"\/46.2-2011.8\/","token":"46.2\/V\/20\/1\/46.2-2011.8"},"44":{"id":"769943","structure_id":"255","section_number":"46.2-2011.9","catch_line":"Bond and letter of credit requirements","url":"\/46.2-2011.9\/","token":"46.2\/V\/20\/1\/46.2-2011.9"},"45":{"id":"768015","structure_id":"255","section_number":"46.2-2012","catch_line":"Repealed","url":"\/46.2-2012\/","token":"46.2\/V\/20\/1\/46.2-2012"},"46":{"id":"774588","structure_id":"255","section_number":"46.2-2042","catch_line":"Repealed","url":"\/46.2-2042\/","token":"46.2\/V\/20\/1\/46.2-2042"},"47":{"id":"794821","structure_id":"255","section_number":"46.2-2043","catch_line":"Repealed","url":"\/46.2-2043\/","token":"46.2\/V\/20\/1\/46.2-2043"}},"previous_section":{"id":"773348","structure_id":"255","section_number":"46.2-2011.8","catch_line":"Transfers of certificates of public convenience and necessity","url":"\/46.2-2011.8\/","token":"46.2\/V\/20\/1\/46.2-2011.8"},"next_section":{"id":"768015","structure_id":"255","section_number":"46.2-2012","catch_line":"Repealed","url":"\/46.2-2012\/","token":"46.2\/V\/20\/1\/46.2-2012"},"references":false,"formats":{"txt":"\/46.2-2011.9.txt","json":"\/46.2-2011.9.json","xml":"\/46.2-2011.9.xml"},"dublin_core":{"Title":"Bond and letter of credit requirements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-2011.9","Relation":"Code of Virginia"},"plain_text":"                                 CODE OF VIRGINIA\n\nBOND AND LETTER OF CREDIT REQUIREMENTS (\u00a7 46.2-2011.9)\n\nA. Every applicant for an original certificate under this chapter shall obtain\nand file with the Department, along with the application, a surety bond or an\nirrevocable letter of credit, in addition to any other bond or letter of credit\nrequired by law, in the amount of $ 25,000, which shall remain in effect for the\nfirst three years of licensure. The bond or letter of credit shall be in a form\nand content acceptable to the Department. The bond or letter of credit shall be\nconditioned on a statement by the applicant that the applicant will not practice\nfraud, make any fraudulent representation, or violate any provision of this\nchapter in the conduct of the applicant’s business. The Department may,\nwithout holding a hearing, suspend the certificate during the period that the\ncertificate holder does not have a sufficient bond or letter of credit on file.\n\nB. Every applicant for an original license pursuant to this chapter shall obtain\nand file with the Department, along with the application, a surety bond or an\nirrevocable letter of credit, in addition to any other bond or letter of credit\nrequired by law, in the amount of $ 25,000. 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 license during the period\nthat the licensee does not have a sufficient bond or letter of credit on file.\n\nC. 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 licensee or certificate holder or his\nagent or employee acting within the scope of employment; (ii) loss or damage by\nreason of a violation by a licensee or certificate holder or his agent or\nemployee of any provision of this chapter in connection with the transportation\nservice; or (iii) loss or damage resulting from a breach of a contract entered\ninto on or after the effective date of this act, that person shall have a claim\nagainst the licensee or certificate holder’s bond or letter of credit, and\nmay recover from such bond or letter of credit the amount awarded to such person\nby final judgment of a court of competent jurisdiction against the licensee or\ncertificate holder as a result of such loss or damage up to, but not exceeding,\nthe amount of the bond or letter of credit.\n\nD. The licensee or certificate holder’s surety shall notify the Department\nwhen a claim is made against a licensee or certificate holder’s bond, when\na claim is paid and when the bond is canceled. Such notification shall include\nthe amount of a claim and the circumstances surrounding the claim. Notification\nof cancellation shall include the effective date and reason for cancellation.\n\nE. The surety on any bond filed by a licensee or certificate holder shall be\nreleased and discharged from all liability accruing on such bond after the\nexpiration of 60 days from the date on which the surety files with the\nDepartment a written request to be released and discharged. Such request shall\nnot operate to relieve, release or discharge the surety from any liability\nalready accrued or which shall accrue before the expiration of the 60-day\nperiod.\n\nHISTORY: 2001, c. 596; 2013, cc. 165, 582."}