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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
This is the bond that lets a carrier register with PennDOT's Central Permit Office for special hauling permits instead of showing up with a certified check or money order for every load. The current Form M-936B calls for at least $5,000, one bond backs every permit issued under the registered name, and it stays in force until PennDOT releases it in writing, so there is no yearly refiling.
Carriers that register with PennDOT for oversize and overweight special hauling permits file a registration agreement (Form M-936RA) and a surety bond (Form M-936B) in favor of the Commonwealth of Pennsylvania. 67 Pa. Code 179.4 sets the floor at $2,000, or $5,000 for the permit monthly billing system, but the current M-936B form states a $5,000 minimum. The bond guarantees payment of permit fees, costs and expenses. Damage to roads and bridges is covered by separate security.
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67 Pa. Code 179.4 says the registration bond must be at least $2,000, or at least $5,000 if the applicant uses PennDOT's permit monthly billing system. PennDOT's current bond form, M-936B (revision 2-19), says a minimum bond of $5,000 is required and leaves room for a higher amount. Plan on at least $5,000, because that is the figure printed on the form PennDOT accepts, and check with the Central Permit Office before the bond is issued if you think the $2,000 floor applies to you.
The M-936B is conditioned on the principal promptly paying the Commonwealth all statutory and regulatory fees, costs and expenses it owes. It does not pay for broken pavement or a damaged bridge. That exposure is handled separately.
Under 75 Pa.C.S. 4962(a), PennDOT and local authorities may require any undertaking or security they consider necessary to compensate for damage to a highway, structure or appurtenance, and 4962(e) makes the permittee liable for all damage caused by moving under the permit. 67 Pa. Code 179.7(c) lets PennDOT require an agreement or security before a permit issues, guaranteeing restoration of damaged highways and bridges for at least 1 year after the permit expires. That security can be an individual or blanket bond on Form M-937C or an irrevocable letter of credit naming the Department as sole beneficiary. A road that PennDOT or a municipality has posted for weight brings its own excess maintenance security under 67 Pa. Code Chapter 189, figured per linear mile.
Registration is what allows a hauler to apply by fax or wire. A hauler that does not register applies in person or by mail and pays with a certified check or money order. PennDOT's hauling permit page lists the M-936RA, the M-936B and Form M-936RAS, the APRAS supplement registration, among the account setup forms. Carriers without an APRAS (Automated Permit Routing/Analysis System) account can work through a Permit Service Partner.
The bond must come from a corporate surety approved by the Pennsylvania Insurance Department. The principal name has to be identical on the M-936B, M-936RA and M-936RAS, and a company that wants permits in more than one name registers separately under each name. A power of attorney for the surety's signer must be attached, dated the same day the bond is executed. The form goes to PennDOT's Bureau of Maintenance and Operations, PO Box 2671, Harrisburg, PA 17105-2671. Registration and bond remain in effect until the Central Permit Office acknowledges cancellation in writing, and the surety cannot cancel without that office's written permission. Before moving under a permit, the permittee must also carry public liability and property damage insurance of at least $250,000 per person and $1 million per occurrence under 179.7(b).
The regulation, 67 Pa. Code 179.4, says at least $2,000, or at least $5,000 for applicants on the permit monthly billing system. PennDOT's current Form M-936B states that a minimum bond of $5,000 is required. Write it for at least $5,000 unless the Central Permit Office tells you otherwise before the bond is issued.
No. The M-936B guarantees payment of permit fees, costs and expenses. Damage is covered by separate security that PennDOT may require under 67 Pa. Code 179.7(c), such as an individual or blanket bond on Form M-937C or an irrevocable letter of credit, held for at least 1 year after the permit expires. 75 Pa.C.S. 4962(e) makes the permittee liable for all damage either way.
Not if you are willing to apply in person or by mail and pay with a certified check or money order. The bond and registration agreement are what let you apply by fax or wire and run permits through an account.
The registration and bond stay valid until PennDOT's Central Permit Office acknowledges cancellation in writing, so there is no annual refiling with PennDOT. The surety bills premium on its own schedule, so keep the bond paid for as long as the permit account is open.
A posted road needs its own permit from whoever posted it, PennDOT for state highways or the municipality for local roads, with excess maintenance security under 67 Pa. Code Chapter 189. For a Type 1 or Type 2 permit that is $12,500 per linear mile of paved road and $6,000 per linear mile of unpaved road, or $50,000 per mile where the road is allowed to be maintained below its normal level.
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