Surety Bond Encyclopedia

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

Brief Summary

Running a driving school on your own still means filing the same $2,500 bond as a large company. You are the principal on the bond, and you are personally behind it. It costs a premium rather than the full $2,500, and it goes to DMV with your certificate application so you can start taking paying students.

Oregon requires every commercial driver training school to file a $2,500 surety bond with DMV under ORS 822.505. An individual or sole owner signs as principal in their own name and business name, the bond runs to the State of Oregon, and it guarantees the school will do business without fraudulent representation. It is filed with the DMV application, proof of insurance and the $400 fee.

We can help with all Oregon bonds!

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

Register your business name with the Oregon Secretary of State Corporation Division and note the registry number.
Your full legal name, business name and home address 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, your fee schedule, the Business Entity Data sheet and the $400 fee.
Authorize the criminal background check DMV runs on every operator.

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

Who has to post this bond

If you personally own and run a commercial driver training school in Oregon, with no corporation or partnership behind it, this is your bond. DMV will not issue a Commercial Driver Training School Certificate without it. OAR 735-160-0011 requires a school bond that meets ORS 822.505, on a form DMV prescribes, and a certification that the bond will stay 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, the same for a one person school as for a large one.

Instructor certificate is a separate thing

Oregon issues two certificates: one for the school and one for each driver training instructor. If you own the school and also teach, you need the school certificate, which carries the bond, and you also need to qualify as an instructor under OAR 735-160-0075. Being a certified instructor does not replace the school bond.

Who is exempt

OAR 735-160-0003 exempts limited driver education for a specialized purpose. Examples include rehabilitation specialists, DMV approved accident prevention courses, emergency vehicle instruction, employers training their own employees in defensive driving, court ordered driver improvement programs and internet only providers with no Oregon location. Teaching the public to drive for a fee is not exempt.

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. Anyone harmed by fraudulent representations or rule violations has a right of action against the school and the surety. If the surety pays a claim, you repay it.

Premium

You pay a premium, not the $2,500 face amount. Because you are the principal, the surety looks at your personal credit when it sets the price.

Eligibility and Requirements for a Oregon Commercial Driver School - Individual ($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.
Bond principal matching your name and registered business name exactly.
Liability insurance of $100,000 per person, $300,000 per accident and $50,000 property damage, unless you teach in a classroom only.
Bond kept in force for as long as the certificate is valid.

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

I am the only instructor. Do I still need a school bond?

Yes. A one person school still needs the Commercial Driver Training School Certificate, and the certificate requires the $2,500 bond. Your instructor qualification is a separate requirement.

Does the bond protect me?

No. It protects the public. If someone is harmed by fraudulent representations or rule violations and the surety pays, you owe the surety that money back.

I only teach in a classroom. Is the bond waived?

No. The DMV application lets classroom only schools skip proof of insurance, but the bond is still required.

When do I renew?

Certificates run on a two year cycle. OAR 735-160-0011 requires the renewal application, documents and payment by the last day of the calendar year, with a 45 day grace period while DMV processes it. A late renewal is treated as a new application.

What does the bond cost?

You pay a premium, not $2,500. The surety prices it mainly on your personal credit, and you see the quote before you buy.