§ 46.2-2122. Bond and letter of credit requirements of applicants for license and certificate
A. Every applicant for an original, second-year renewal, third-year renewal, fourth-year renewal, and fifth-year renewal of a certificate of public convenience and necessity under this chapter shall obtain and file with the Department 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. 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 public convenience and necessity 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 and subsequent renewal license pursuant to Article 5 of this chapter shall obtain and file with the Department 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.
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'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'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/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.
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 sixty 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 sixty-day period.
(2001, c. 596.)
Sections: Previous 46.2-2115 46.2-2116 46.2-2117 46.2-2118 46.2-2119 46.2-2120 46.2-2121 46.2-2122 46.2-2123 46.2-2124 46.2-2125 46.2-2126 46.2-2127 46.2-2128 46.2-2129 NextLast modified: April 3, 2009