Section 360. Release of surety and requirement of new bond; cancellation of certificate of registration

The surety on a bond filed by any rentor will be released and discharged from any and all liability accruing on the bond to the Commonwealth after the expiration of 60 days from the date upon which the surety company has filed a written request with the commissioner to be released and discharged. No such request will operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue before the expiration of the 60-day period.

Upon receipt of such notice from a surety company, the commissioner will:

1. Notify the rentor who furnished the bond of the request for release of the surety; and

2. Request the rentor to file a new bond or other security with the commissioner on or before the expiration of 60 days from the date the surety filed a request with the commissioner.

Failure of any rentor to file a new bond or other security as requested will result in the cancellation of the certificate of registration of such rentor.

If a new bond or other security is furnished by the rentor, the commissioner will cancel and surrender the bond of the rentor for which such new bond or other securities were substituted.

Historical Notes

Derived from VR485-60-8701 § 6.7, eff. January 1, 1987; amended, Volume 13, Issue 22, eff. July 1, 1997.

Statutory Authority

§ 58.1-2421 of the Code of Virginia.