SECTION 218.41. Bond

(a) Filing. A motor transportation broker shall file a bond with the department before it may act as a motor transportation broker.

(b) Conditions of bond.

(1) The bond shall be:

(A) in an amount of at least $10,000;

(B) executed by a bonding company authorized to do business in the state of Texas; and

(C) payable to the State of Texas or a person to whom the motor transportation broker provides services.

(2) The bond shall be conditioned upon:

(A) the faithful performance of the contracts or agreements of transportation by the motor carrier or motor carriers for whom the motor transportation broker is acting, and which were negotiated by the broker; and

(B) the honest and faithful performance by the motor transportation broker in that capacity.

(3) The bond shall provide that all defenses available to the motor carrier shall be available to the principal and surety, but no condition or provision of the bond shall otherwise affect the right of the shipper to collect all damages to which it may be entitled at law.

(c) Expiration or cancellation of bond. 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 department, either personally or by certified mail. Unless the principal files a new bond in compliance with the requirements of this section on or before the expiration of the 30-day period, the person may not act as a motor transportation broker.

(d) Amount of recovery. In no event shall the total of all recoveries under a bond exceed the penal amount.

Source Note: The provisions of this §218.41 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104