(a) The applicant shall file with the commission, within 20 days after he receives notice of the entry of an order approving his application, a bond in the penal sum of at least $10,000, payable to the secretary of the commission, with applicant as principal and a surety company duly-licensed and authorized to do business in the State of Texas as surety, conditioned:
- (1) upon the faithful performance by the motor carrier or motor carriers for whom the applicant is licensed to act, of the contracts or agreements of transportation negotiated by the licensee; and
- (2) upon the honest and faithful performance by the applicant of any undertaking as a licensed motor transportation broker. The form of bond shall be prescribed by the director. If the applicant fails to file his bond within the time and in compliance with the requirements provided in this section, no license will be issued to him on that application.
- (b) The bond shall provide that all defenses available to the motor carrier shall be available to the principal and his surety, but no condition or provision of the bond shall otherwise affect the right of the shipper to collect all damages to which he may be entitled at law.
- (c) The bond shall not expire or be subject to cancellation until the 30th day after written notice of expiration or cancellation has been served on the principal and the commission, either personally or by registered mail. Unless on or before the expiration of said 30-day period, the principal files a new bond in compliance with the requirements of this section, his license shall likewise terminate upon the expiration of said period.
- (d) In no event shall the total of all recoveries under a bond exceed the penal amount thereof.
Source Note:The provisions of this §5.308 adopted to be effective July 18, 1995, 20 TexReg 4922.