Surety Bond Encyclopedia

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

Brief Summary

When two or more partners run an Oregon driver training school together, DMV needs one $2,500 bond in the partnership's name, plus background check authorizations from every operator. Get the partner list right on the bond and the application and the certificate packet goes through cleanly.

Oregon requires every commercial driver training school to file a $2,500 surety bond with DMV under ORS 822.505. For a partnership, the bond names the partnership as principal, runs to the State of Oregon and guarantees the school will do business without fraudulent representation. It is filed with the DMV application, proof of insurance and the $400 fee, and it must stay in force as long as the certificate is valid.

We can help with all Oregon bonds!

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

Confirm the partnership's registered business name and Secretary of State registry number.
Names and home addresses of every partner 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 in the partnership's name.
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 partner who is an operator authorize the criminal background check.

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

Who has to post this bond

A partnership that operates a commercial driver training school in Oregon needs a Commercial Driver Training School Certificate from DMV. OAR 735-160-0011 makes the bond a condition of that certificate: the operator submits a school bond meeting ORS 822.505, on a form DMV prescribes, and certifies it 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. Adding partners, instructors or vehicles does not change it.

Every partner is on the paperwork

DMV Form 735-6050 asks for each owner's name, date of birth, residence address and driver license number, with a separate sheet for additional owners. All operators must authorize a criminal background check, and the application can be signed by any partner shown on the form. The partnership also registers its business name with the Secretary of State Corporation Division and gives DMV the registry number. A change in partners is worth raising with both DMV and your surety, since the certificate is not transferable to another school under OAR 735-160-0011.

Who is exempt

OAR 735-160-0003 exempts limited driver education for a specialized purpose, such as employer defensive driving for its own staff, government public safety training, emergency vehicle instruction, rehabilitation specialists, DMV approved accident prevention courses and internet only providers with no Oregon location. A partnership 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. Any person harmed by fraudulent representations or rule violations has a right of action against the school and the surety.

Premium

You pay a premium, not the $2,500 face amount. The surety generally reviews the partners when it sets the price.

Eligibility and Requirements for a Oregon Commercial Driver School - Partnership ($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.
Partnership name on the bond matching the Secretary of State registration exactly.
Liability insurance of $100,000 per person, $300,000 per accident and $50,000 property damage, unless the school teaches in a classroom only.
Bond kept in force for as long as the certificate is valid.

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

Does each partner need a separate bond?

No. The school files one $2,500 bond in the partnership's name. Each partner who is an operator still has to be listed on the DMV application and authorize the background check.

Does the bond renew every year?

The certificate runs on a two year cycle, and OAR 735-160-0011 requires the bond to stay in effect for as long as the certificate is valid. Renewal paperwork is due to DMV by the last day of the calendar year, with a 45 day processing grace period.

We only teach in a classroom. Is the bond still required?

Yes. The DMV application lets classroom only schools skip proof of insurance, but not the $2,500 bond.

Who can 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 can bring an 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 partners, and you see the quote before you buy.