Surety Bond Encyclopedia

Commercial Driver School - Corporation ($2,500) Bond - Statewide in Oregon

Brief Summary

A corporation cannot run a commercial driver training school in Oregon until DMV has its $2,500 bond on file, and the bond has to stay in force for as long as the school certificate is valid. It is a small bond, quick to issue, and it goes in with the rest of the certificate packet to DMV Third Party Programs.

Oregon requires every commercial driver training school to file a $2,500 surety bond with DMV under ORS 822.505. For a corporation, the bond is written in the corporation's registered name, runs to the State of Oregon, and guarantees the school will conduct business without fraudulent representation. It is filed with the DMV application, proof of insurance and the $400 fee.

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How to Apply for a Commercial Driver School - Corporation ($2,500) Bond:

Confirm the corporation's exact registered name and Secretary of State registry number.
Officer and owner names and home addresses for the bond application.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed $2,500 bond on DMV form 735-6880.
Send the bond to DMV Third Party Programs with Form 735-6050, insurance certification Form 735-6618, the fee schedule, the Business Entity Data sheet and the $400 fee.
Have every operator complete the criminal background check authorization.

Detailed Information About the Oregon Commercial Driver School - Corporation ($2,500) Bond:

Who has to post this bond

Any corporation that operates a commercial driver training school in Oregon needs a Commercial Driver Training School Certificate from DMV, and the bond is part of that certificate. OAR 735-160-0011 requires the operator to submit a school bond that meets ORS 822.505, on a form prescribed by DMV, and to certify that the bond will remain in effect as long as the certificate is valid. The DMV application lists the bond form as DMV form 735-6880.

The amount is a flat $2,500. There are no tiers by fleet size, number of instructors or locations.

Who is exempt

OAR 735-160-0003 exempts a person that provides limited driver education or training for a specialized purpose. The listed examples include employers giving defensive driving training to their own employees, government agencies offering public safety training, emergency vehicle driving instruction, rehabilitation specialists, DMV approved accident prevention courses, court ordered driver improvement programs and internet only providers with no physical location in Oregon. A corporation that teaches the public to drive for a fee is not in that group.

What the bond covers

Under ORS 822.505 the bond is executed to the State of Oregon by a corporate surety licensed in Oregon and is conditioned on the school doing business without fraudulent representation. Any person harmed by the school's fraudulent representations or violations of the driver training school rules has a right of action against the school and the surety.

Corporate filing details

The corporation must be registered with the Secretary of State Corporation Division and give DMV its registry number, along with the Business Entity Data sheet. DMV Form 735-6050 asks for each owner or officer, and every operator must authorize a criminal background check. The bond principal should match the corporate name on that registration exactly.

Premium

You pay a premium, not the $2,500 face amount. The surety sets it after reviewing the corporation and its principal owners.

Eligibility and Requirements for a Oregon Commercial Driver School - Corporation ($2,500) Bond:

Bond amount of $2,500 under ORS 822.505.
State of Oregon named as obligee, on DMV form 735-6880.
Corporate surety licensed to do business in Oregon.
Corporation registered with the Oregon Secretary of State Corporation Division.
Liability insurance of $100,000 per person, $300,000 per accident and $50,000 property damage, unless the school offers classroom instruction only.
Bond kept in force for as long as the certificate is valid.

Oregon Commercial Driver School - Corporation ($2,500) Bond FAQs:

Is the bond amount different for a corporation?

No. ORS 822.505 sets one $2,500 amount for every commercial driver training school. The corporate version simply names the corporation as principal.

We only teach in a classroom. Do we still need the bond?

Yes. Classroom only schools can skip the proof of insurance requirement, according to the DMV application, but the $2,500 bond is still required for the certificate.

How long is the certificate good for, and when do we renew?

DMV issues certificates on a two year cycle. OAR 735-160-0011 requires the renewal application, documents and payment by the last day of the calendar year, and DMV allows a 45 day processing grace period. A late renewal is treated as a new application.

Who can make a claim on the bond?

Under ORS 822.505, any person who suffers loss from the school's fraudulent representations or violations of the driver training school laws and rules has a right of action against the school and the surety.

What does the bond cost?

You pay a premium, not $2,500. The surety prices it after reviewing the corporation and its owners, and you see the quote before you buy.