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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
Running heavy trucks on a Young Township road means the township needs security that it will be made whole if the road breaks up under your loads. A surety bond provides that security for a premium, so you are not leaving a cashier's check or a letter of credit with the township for the life of the job.
The Young, PA Road Damage Permit bond guarantees that a hauler or contractor using township roads under permit will pay for damage beyond normal maintenance. Pennsylvania has two Young Townships, one in Indiana County and one in Jefferson County, so the bond must name the one that issued your permit. When the road is posted for weight, 67 Pa. Code 189.4 sets the security by road mile and permit type, from $6,000 per mile of unpaved road up to $50,000 per mile for roads maintained below standard.
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If the township road you need is posted for weight under Section 4902(a) of the Vehicle Code, the security a posting authority can require is set by 67 Pa. Code 189.4(d)(1). It depends on the permit type and how many miles of posted road you will use.
The regulation lets PennDOT publish a revised schedule of bonding amounts, no more than once a year, so confirm the current figure and the mileage with the township before the bond is written.
A permit to exceed a posted weight limit is conditioned on the permittee agreeing to accept financial responsibility for excess maintenance of the road. The bond backs that agreement. If your hauling damages the road beyond normal maintenance and you do not repair it, the township can claim against the bond. Under 189.4(d)(3), once estimated damage reaches 75% or more of the security, the township may require the road to be maintained or reconstructed within 30 days unless you agree to provide additional security.
A Type 1 permit covers one over-posted-weight vehicle on a particular road and must be carried in that vehicle. A Type 2 permit covers any number of over-posted-weight vehicles going to or from a common destination. A Type 3 permit covers one vehicle on a number of specified posted roads and is issued only when the posting authority expects minimal damage from a limited number of moves.
Under 67 Pa. Code 189.3(a), over-posted-weight local traffic may exceed posted limits unless the posting authority determines the vehicles are likely to damage the road. Under 189.4(d)(4), the posting authority may also authorize self-bonding if your finances show it could collect a judgment against you. The regulation also accepts a certified or cashier's check, a bank account or an irrevocable letter of credit in favor of the posting authority in place of a surety bond.
Pennsylvania has a Young Township in Indiana County and another in Jefferson County. Confirm which township issued your permit, its current bond form, and the road segments it wants covered before the bond is issued.
For a posted road, 67 Pa. Code 189.4 sets security at $6,000 per linear mile of unpaved road or $12,500 per linear mile of paved road for Type 1 and Type 2 permits, $50,000 per mile for roads the township lets fall below standard maintenance, and $10,000 per county or municipality for a Type 3 permit. Your total depends on the miles of posted road on your route.
Under 67 Pa. Code 189.3(a), over-posted-weight local traffic may exceed posted limits without a permit unless the township determines those vehicles are likely to damage the road. If the township makes that determination, a permit and security are required.
Yes. Section 189.4(d)(2) allows a certified or cashier's check, a bank account or an irrevocable letter of credit in favor of the township, or other security the township accepts. The township may also allow self-bonding if your finances support it.
You are responsible for the excess maintenance under the agreement you signed. If damage is estimated at 75% or more of the security, the township may require the road to be maintained or reconstructed within 30 days unless you add security. If you do not repair, the township can claim against the bond and the surety will look to you for repayment.
The premium is a charge on the bond amount, so a longer route or a paved road raises it. The surety sets the rate after reviewing the principal's credit, financial strength and hauling history.
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