Current through Register Vol. 54, No. 44, November 2, 2024
Section 77.223 - Special terms and conditions for surety bondsA surety bond is subject to the following conditions:
(1) The Department will not accept the bond of a surety company which has failed or delayed in making payment on a forfeited surety bond.(2) The Department will not accept the bond of a surety company unless the bond is not cancellable by the surety at any time for any reason, including, but not limited to, nonpayment of premium or bankruptcy of the permittee during the period of liability.(3) The Department will not accept a single bond in excess of a surety company's maximum single obligation as provided by The Insurance Company Law of 1921 (40 P. S. §§ 341-991), unless the surety company satisfies that statute for exceeding that limit.(4) The Department will provide in the bond that the amount shall be confessed to judgment upon forfeiture.(5) The bond shall provide that the surety and the permittee shall be jointly and severally liable.(6) The Department will accept only the bond of a surety authorized to do business in this Commonwealth, when the surety bond is signed by an appropriate official of the surety as determined by the Department. When the principal place of business of the surety is outside of this Commonwealth, the surety bond shall be signed by an authorized resident agent of the surety.(7) The bond shall provide that liability on the bond will not be impaired nor affected by a renewal or extension of the time for performance, or a forbearance or delay, in declaring or enforcing forfeiture of the bond. The surety has no right to cover or perform the principal's obligation on the bond, although the Department may allow the surety to do so in lieu of enforcing the forfeiture or collecting the bond. A forbearance of delay does not affect the obligations under the bond.The provisions of this §77.223 adopted March 16, 1990, effective 3/17/1990, 20 Pa.B. 1643. This section cited in 25 Pa. Code § 77.221 (relating to scope).