Surety Bond Encyclopedia

Road Use Bond - Township of Licking, PA in Pennsylvania

Brief Summary

If your trucks will run over a weight posted road in Licking Township, Clarion County, the bond amount is usually a matter of arithmetic, not negotiation. Pennsylvania's posted road rules price the security by the linear mile and by road surface, so measuring your route before you call for a bond saves a second trip to the township.

Licking Township requires security from haulers who exceed a posted weight limit on a township road. Pennsylvania's posted highway regulation, 67 Pa. Code 189.4, sets the amount for a Type 1 or Type 2 permit at $12,500 per linear mile of paved road, $6,000 per linear mile of unpaved road, and $50,000 per linear mile where the township lets the road be kept below its normal standard. A Type 3 permit carries $10,000 per municipality. Confirm the current figure and the township's permit form before the bond is issued.

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How to Apply for a Road Use Bond:

Map the route and total the linear miles of posted Licking Township road, split between paved and unpaved.
Ask the township which permit type applies (Type 1, Type 2 or Type 3) and which bonding schedule it uses.
Sign the township's excess maintenance agreement.
Apply for the bond in the exact amount the township sets and pay the premium.
Deliver the executed bond to Licking Township before the first overweight trip.
Carry the permit in the truck when a Type 1 permit is issued.

Detailed Information About the Pennsylvania Road Use Bond:

Start with a tape measure, not a guess

The road use bond in Licking Township is sized by the miles of posted township road your route covers. Under 67 Pa. Code 189.4(d), a Type 1 permit (one vehicle on a particular posted road) or a Type 2 permit (any number of vehicles running to or from a common destination) carries security of:

$12,500 per linear mile for paved roads
$6,000 per linear mile for unpaved roads
$50,000 per linear mile for any road the township allows to be maintained below a level consistent with its type

A hauler crossing 3 miles of paved posted road on a Type 1 or Type 2 permit is looking at 3 x $12,500, or $37,500. A Type 3 permit, which covers one vehicle on several named posted roads, is a flat $10,000 for each county or municipality the permit covers. The regulation also lets PennDOT publish revised bonding schedules as maintenance costs change, so ask the township which schedule it is using.

Why the township can ask for it

75 Pa.C.S. 4902 lets local authorities restrict vehicle weight on a highway after an engineering and traffic study, issue permits for heavier movements, and require the agreement or security they consider necessary to cover repairs and restoration caused by those movements. Chapter 189 conditions every posted road permit on the hauler accepting financial responsibility for excess maintenance, meaning repair beyond normal upkeep that is caused by overweight vehicles. The bond backs that promise.

The local traffic exception

You may not need a permit at all. 67 Pa. Code 189.3 lets local traffic exceed a posted limit. Local traffic includes emergency vehicles, school buses, government vehicles doing construction or maintenance on the posted road, and vehicles going to or from homes, businesses or farms on that road. The exception has an edge, though. If the township decides that trucks bound for a particular destination are likely to damage the road, it can give notice and those trucks then need a permit like anyone else. Keep bills of lading or a company certification showing a destination on the posted road, since that is the proof 189.3(c) contemplates.

Forms of security

Chapter 189 allows a performance bond with a surety authorized in Pennsylvania, and at the permittee's option a certified or cashier's check, a bank account or an irrevocable letter of credit. The township may also allow self bonding for a hauler with the financial strength to justify it.

Eligibility and Requirements for a Pennsylvania Road Use Bond:

Obligee is Licking Township, Clarion County, as the posting authority for its own roads.
Type 1 and Type 2 permits: $12,500 per linear mile paved, $6,000 per linear mile unpaved, $50,000 per linear mile for a road kept below standard.
Type 3 permit: $10,000 for each county or municipality covered.
Performance bond written by a surety authorized to do business in Pennsylvania.
Signed agreement accepting financial responsibility for excess maintenance of the posted road.

Pennsylvania Road Use Bond FAQs:

How is the bond amount figured?

By the mile. For a Type 1 or Type 2 permit, 67 Pa. Code 189.4 sets $12,500 per linear mile of paved road, $6,000 per linear mile of unpaved road, and $50,000 per linear mile of road the township lets run below its normal standard. A Type 3 permit is $10,000 for each county or municipality it covers.

I deliver to a farm on the posted road. Do I need this bond?

Not unless the township tells you so. Vehicles going to or from farms, homes and businesses on a posted road count as local traffic under 67 Pa. Code 189.3 and may exceed the posted limit. If the township finds that trucks bound for a particular destination are likely to damage the road, it can give notice, and from then on those trucks need a permit and security.

Can I post cash or a letter of credit instead?

Yes. Chapter 189 lets the permittee choose a certified or cashier's check, a bank account or an irrevocable letter of credit in place of a surety bond. A bond avoids tying up that cash for the life of the permit.

Is there a permit fee?

For a Type 3 permit, 67 Pa. Code 189.4(g) caps a local authority's administrative fee at $15. Ask Licking Township about any other charges before you apply.

Who sets the final amount?

Licking Township, as the posting authority. The regulation's per mile figures are the starting point, and PennDOT may publish revised schedules, so get the number from the township in writing before the bond is issued.