Title 40, Chapter 9, Section 38
(a) Security under this chapter may also be provided for by a surety
bond executed by the person and by a surety company duly authorized
to transact business in this state or by the person giving proof of
his ownership of real property and by one or more individual
sureties owning real property within this state and having an equity
therein in at least the amount of the bond. The commissioner may not
accept any real property bond unless the real property is scheduled
in an affidavit attached thereto setting forth a description of such
property and the title thereto, including any liens and encumbrances
and amounts thereof, market value and value of such sureties'
interest therein, executed by the owner or owners of such interest,
and such bond and affidavit shows thereon that a duplicate original
of such bond and affidavit has been recorded in the office of the
clerk of the superior court where deeds are admitted to record in
the county where the real property is located. The clerk shall
provide a separate book for such purpose. The bond shall be approved
by the clerk in the same manner as a supersedeas bond is approved.
The fee of the clerk for recording and approving such affidavit and
bond shall be $2.50.
(b) The commissioner shall not accept any such bond unless it is
conditioned for payments in amounts requested by the commissioner,
subject to the maximum amounts of security as specified under this
(c) No such bond shall be canceled unless 20 days' prior written
notice of cancellation is given the commissioner, and cancellation
of the bond shall not prevent recovery thereon with respect to any
cause of action which necessitated the filing of such bond.
(d) A bond with individual sureties shall constitute a lien upon the
real property of the principal and any individual surety in favor of
the Governor of Georgia for the use of any holder of any final
judgment arising out of the cause of action which necessitated the
filing of the bond, against the principal on account of damage to
property or injury to or death of any person or persons, upon the
recording of the bond in the office of the clerk of the court where
deeds are admitted to record in the county where the real property
(e) When a bond with individual sureties filed with the commissioner
is no longer required under this chapter, the commissioner shall,
upon request, cancel it as to liability for damage to property or
injury to or death of any person or persons; and, when a bond has
been canceled by the commissioner, he shall, upon request, furnish a
certificate of cancellation with the seal of the department thereon.
The certificate, notwithstanding any other provision of law, may be
recorded in the office of the clerk of the court in which the bond
was admitted to record.
(f) When the certificate of cancellation with the seal of the
department thereon has been filed in the office of the clerk of the
superior court in which the bond was admitted to record, and when
there are no claims or judgments against the principal in the bond
on account of damage to property or injury to or death of any person
or persons resulting from the ownership or operation of a motor
vehicle by the principal arising out of the cause of action which
necessitated the filing of the bond, the clerk of the superior court
of the county in which the bond was admitted to record shall
thereupon record the certificate of cancellation, which shall
discharge the lien of the bond on the real property of the sureties.
The cost of such recording shall be upon such sureties.
(g) If a final judgment rendered against the principal on the bond
filed with the commissioner is not satisfied within 30 days after
its rendition, the judgment creditor may, for his own use and
benefit and at his sole expense, bring an action on the bond in the
name of the state against the company or persons issuing the bond.
(h) When the sureties on the bond are individuals, the judgment
creditor may proceed against any or all parties to the bond at law
for a judgment or in equity for a decree and foreclosure of the lien
on the real property of the sureties. The proceeding whether at law
or in equity may be against one, all, or any intermediate number of
parties to the bond; and, when less than all are joined, another or
others may be impleaded in the same proceeding; and, after final
judgment or decree, other proceedings may be instituted until full
satisfaction is obtained.
(i) The department may, upon written notice to all parties involved,
reduce or increase the amount of security ordered in any case within
six months after the date of the accident if in its judgment the
amount ordered is excessive or inadequate. In case the security
originally ordered has been deposited, the excess deposit over the
reduced amount ordered shall be returned to the depositor or his
(j) Whenever erroneous information is given the department with respect to the matters set forth in paragraph (1), (2), or (3) of Code Section 40-9-34, the department shall take appropriate action as provided in Code Section 40-9-32 after receipt of correct information with respect to such matters.