§ 261 License Bond Expiration Rules

• •If you have a license or registration, it stops working if your required bond (like a promise to pay if something goes wrong) ends or gets canceled.
• •If the bond company goes out of business and you can prove you have enough money, the license might stay valid for up to 30 extra days so you can get a new bond.
• •This rule applies unless another law says something different.

You own a small moving company and have a license to operate. Your bond (like insurance) gets canceled because the bond company shuts down.

Your license would normally expire right away, but if you show the government you have enough money, they might give you 30 extra days to find a new bond company.