Certain authority types are required to file a surety bond or an irrevocable letter of credit with DMV's Motor Carrier Services. The bond/letter of credit is to protect the public from any potential loss or damage associated with the services you provide. Your certificate or license may be revoked if you fail to keep the surety bond or irrevocable letter of credit on file.
The amount of the bond/letter of credit depends on the type of authority you obtain. The length of time that you must keep the bond/letter of credit on file also depends on the type of authority you obtain.