Surety Bond Encyclopedia

Motor Vehicle Messenger Service ($50,000) Bond - Statewide in Pennsylvania

Brief Summary

PennDOT bonds a messenger service by location, not by company. The first office carries a $50,000 bond, each additional location adds another $50,000, and the total stops at $250,000. Getting the count right before the surety writes Form MV-375 keeps your Messenger Services Agreement and certificate of authorization on schedule.

A Pennsylvania motor vehicle messenger service must hold a contract with PennDOT under 75 Pa.C.S. 7501 and post a bond under 75 Pa.C.S. 7503.1 in the amount PennDOT sets. PennDOT's PUB 462 sets it at $50,000 for the messenger service plus $50,000 for each additional location, not to exceed $250,000. The bond is filed on Form MV-375 for the benefit of the Commonwealth and anyone who suffers a monetary loss from the service's intentional or negligent conduct.

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How to Apply for a Motor Vehicle Messenger Service ($50,000) Bond:

Count every location before ordering the bond: $50,000 for the service plus $50,000 for each additional location, up to $250,000.
Have the surety execute PennDOT Form MV-375, or a rider to the bond where PUB 462 allows one.
Submit two copies of the PUB 462 requirement documents to the Issuing Agent Registration Unit of the Bureau of Motor Vehicles.
Include a Pennsylvania State Police criminal record check on Form SP 4-164 for each owner, officer and employee, less than one year old.
Provide bank reference letters, three business reference letters and a notarized statement that no money is owed to the Commonwealth.
Pay the annual fee for the principal place of business listed on Form MV-70S.

Detailed Information About the Pennsylvania Motor Vehicle Messenger Service ($50,000) Bond:

The amount depends on how many locations you run

The statute does not fix a number. 75 Pa.C.S. 7503.1 says PennDOT must require a bond indemnifying the public and the department in an amount the department specifies, and 67 Pa. Code 255.4 points to the Messenger Services Agreement for the figure. PennDOT's PUB 462 (4-25), Messenger Service Requirements to Open a Main Office, fills it in. The messenger service files a $50,000 bond. If it has more than one location, it adds $50,000 for each location, not to exceed $250,000. The instructions on Form MV-375 describe the same schedule as $50,000 plus an additional $50,000 per branch office.

Online messenger service centers

PennDOT's On-Line Messenger Program Requirements use a separate schedule. The online service maintains $50,000 for each approved online messenger service center site, and a service approved to automate more than three sites maintains a bond not to exceed $200,000. Only a currently authorized messenger service can apply for the online program.

What the bond covers

Under 67 Pa. Code 255.4 the bond protects the Commonwealth and anyone who suffers a monetary loss from intentional or negligent conduct of the service or its agents or employees, including losses on checks or other instruments it negotiates. If the bond is reduced or a judgment on it is outstanding, PennDOT suspends the authorization until the original amount is restored. Operating a messenger service without a valid PennDOT contract is a summary offense carrying a $500 fine under 75 Pa.C.S. 7501(c).

Term and renewal

The Messenger Services Agreement in PUB 462 runs for three years and can be renewed by letter agreement for additional three year periods. Certificates of authorization expire June 30 each year and are renewed annually, with the annual fee for the principal place of business shown on PennDOT Form MV-70S.

Eligibility and Requirements for a Pennsylvania Motor Vehicle Messenger Service ($50,000) Bond:

A surety company authorized by law to do business in Pennsylvania.
A signed Messenger Services Agreement with PennDOT under 75 Pa.C.S. 7501.
Interior and exterior photographs of the office, its signs and its secure storage area.
A written security plan for safeguarding PennDOT supplies, products and applications.
Counter service, if offered, open at least 20 hours a week between 7:00 a.m. and 9:00 p.m.

Pennsylvania Motor Vehicle Messenger Service ($50,000) Bond FAQs:

We are opening a second office. Does our bond change?

Yes. PUB 462 requires an additional $50,000 bond for each location beyond the first, so two locations means $100,000 in bonding. The total does not have to exceed $250,000, however many locations you add.

Is the online messenger bond the same thing?

No. Online messenger service centers follow PennDOT's On-Line Messenger Program Requirements, which call for $50,000 for each approved online site and a bond not to exceed $200,000 once a service is approved for more than three sites. Only a currently authorized messenger service can apply for the online program.

Why is there no amount in the statute?

75 Pa.C.S. 7503.1 leaves the figure to PennDOT, and 67 Pa. Code 255.4 ties it to the Messenger Services Agreement. PennDOT publishes the current figures in PUB 462 and on Form MV-375. Check the amount in your own agreement before the bond is issued.

What happens if a claim is paid?

If a claim reduces the bond or a judgment on it is left unpaid, 67 Pa. Code 255.4 suspends your authorization until the bond is brought back to its original amount. The surety then looks to the messenger service to repay what it paid out.

How often does it renew?

Certificates of authorization expire June 30 each year. The Messenger Services Agreement runs for three years. The MV-375 bond is continuous, and the surety must notify the Bureau of Motor Vehicles at least 60 days before cancelling or not renewing it.