OA 456 (01/01/2018)
For-Hire Operating Authority Certificate or License
Irrevocable Letter of Credit
Household Goods Carriers
1. ,
being authorized to conduct business in the Commonwealth of Virginia, hereby establish as an Irrevocable Letter of
Credit ( ) in favor of persons described in Paragraph 2, providing written notice of a final
judgement, to pay any liabilities up to an aggregated amount of
( )
hereafter found to be due from
under Chapter 21 of Title 46.2 of the Code of Virginia, as the same may be from time to time amended, modified,
recodified, or otherwise rewritten. By these presents, Financial Institution firmly binds itself, its heirs, administrators,
successors and assigns to make effective payment due from Principal as to fraudulent practices or representations, or
loss or damage resulting from a breach of contract, or violations of any provision of Chapter 21 of Title 46.2 of the Code
of Virginia occurring on or after the day of , , hereafter referred to as the effective date.
2. Said payment shall be made upon written notice of final judgment from a court of competent jurisdiction
against the Principal for fraudulent practices or representations, or loss or damage from a breach of contract, or violations
of any provision of Chapter 21 of Title 46.2 of the Code of Virginia. Any demand or presentment made under and in
compliance with the terms of this letter of credit shall be duly honored by the Financial Institution, as specified, covering
fraudulent practices or representations, or loss or damage from a breach of contract, or violations of any provision of
Chapter 21 of Title 46.2 of the Code of Virginia occurring on or after the above stated effective date and on or before the
day of , hereinafter referred to as the expiration date, or any extended expiration
date of this Irrevocable Letter of Credit as set forth below.
3. This Irrevocable Letter of Credit shall be deemed automatically extended annually without amendment for a
period consistent with the letter of credit requirements delineated in Chapter 21 of Title 46.2 of the Code of Virginia, with
approval of the Commissioner of the Department of Motor Vehicles for an additional period of one year from the above or
any extended expiration date unless the Financial Institution shall notify the Commissioner, by registered mail
postmarked sixty (60) days prior to such expiration date or from any future expirations date, that the Financial Institution
elects not to renew this Irrevocable Letter of Credit for such additional period. Such annual election shall not relieve,
Financial Institution
number
Principal -- Legal Entity
Year
Year
(minimum amount $50,000)
Dollars
OA 456 (01/01/2018)
release, or discharge the Financial Institution from any obligation under this Irrevocable Letter of Credit for any loss or
damages caused to a person by reason of fraudulent practices or representations, breach of contract, or violations of
Chapter 21 of Title 46.2 of the Code of Virginia in connection with the Principal's transportation service on or after the
effective date and prior to or on the expiration date or any extended expiration date, and with respect to any such loss or
damages, this Irrevocable Letter of Credit shall remain in effect. If, for any reason, this Irrevocable Letter of Credit is not
renewed, any person suffering loss or damage will have the right to draw from the Irrevocable Letter of Credit (prior to its
expiration date) any outstanding balance which pertains to the loss or damages.
4. The Financial Institution hereby engage with the drawer of drafts drawn under and in compliance with the
terms of the letter of credit that such drafts will be duly honored upon presentation of drafts and documents to the
Financial Institution on or before the release date of the Irrevocable Letter of Credit.
5. The Financial Institution shall accept demand by any person suffering loss or damage in compliance with the
terms of this Irrevocable Letter of Credit on its face, and the Financial Institution shall have no duty, responsibility, or
liability to the Principal with respect to the underlying validity of said demand.
Year
Name of Financial Institution
(Seal)
By:
Institution's Officer (Print Name) (Title)
Signature
This day of ,
Institution Officer
Title
Name of Company
Year
Notary Public Signature and Seal
Year
Affidavit and Acknowledgment of Authority
I, , a notary public in and for the State/Commonwealth
of , do certify that personally
appeared before me and made oath that he/she is
of ; and that he/she is duly authorized to execute the foregoing
Irrevocable Letter of Credit as a legally binding document.
Given under my hand this day of , .
My commission expires , . My Registration Number is .