Virginia law requires applicants for motor vehicle certificates and licenses to submit a $25,000 surety bond or irrevocable letter of credit with their application. This bond or letter of credit must remain in effect for the first three years of licensure or certification and ensures the applicant's commitment to lawful and honest conduct. The Department can suspend the certificate or license if the required financial security is not maintained.
Applicants for original motor vehicle certificates and licenses in Virginia must submit a $25,000 surety bond or irrevocable letter of credit with their application.
The bond or letter of credit must remain in effect for the first three years of licensure or certification.
The Virginia Department of Motor Vehicles can suspend the certificate or license without a hearing if the bond or letter of credit is not kept current.
It ensures that the applicant will not commit fraud, make fraudulent representations, or violate laws in conducting their business.