MCD-LOC01 Form – If you’re applying for an Over Axle/Over Gross Weight Tolerance Permit or a timber permit in Texas, you may need the MCD-LOC01 Form — the official Irrevocable Standby Letter of Credit accepted by the Texas Department of Motor Vehicles (TxDMV) Motor Carrier Division (MCD).
This guide covers everything you need to know: what the MCD-LOC01 is, who needs it, how it works as financial assurance for county road damage, exact completion instructions, submission rules, and the official free PDF download. All information is drawn directly from current TxDMV sources, including the form itself (Rev. 08/21) and the Annual Over Axle/Over Gross Weight Tolerance Permit page.
What Is the MCD-LOC01 Form?
The MCD-LOC01 is the standardized template for an Irrevocable Standby Letter of Credit (LOC) issued by a Texas-regulated bank. It serves as $15,000 collateral payable to the County Commissioners Court of any county in Texas (the beneficiary).
Purpose: It guarantees payment to counties for:
- Highway damages caused by vehicles operating under a permit issued per Texas Transportation Code §623.011 or §623.321, or
- Failure to follow permit notification requirements in §623.323.
The LOC is one of two acceptable forms of financial responsibility (the other being the Over Axle/Over Gross Weight Tolerance Permit Bond on Form 1753). TxDMV requires it before issuing certain annual tolerance permits for divisible loads that exceed legal axle weights by up to 10% or gross weight by up to 5%.
Key features (per official form):
- Amount: Exactly $15,000 USD, available by sight draft.
- Irrevocable and governed by Uniform Customs and Practice for Documentary Credits (UCP 600).
- Automatically renews for one year unless the bank gives TxDMV at least 30 days’ written notice of non-renewal.
- Only original documents accepted — no faxes or scans.
Who Needs the MCD-LOC01 Standby Letter of Credit?
You need it (or the equivalent bond) if you are a first-time applicant for a non-agricultural Over Axle/Over Gross Weight Tolerance Permit via Form MCD-1751.
It also applies to timber permits and certain agricultural hauls where county road protection is required. Agricultural product haulers (e.g., timber, cotton) sometimes qualify for exemptions from the financial instrument, but timber-specific permits explicitly reference the MCD-LOC01 option in TxDMV instructions.
Not required for:
- Pure agricultural tolerance permits in many cases (check your specific application).
- Standard oversize/overweight permits that do not use the tolerance program.
- Interstate operations (different federal rules apply).
Motor carriers must have an active TxDMV number and USDOT number. The permit allows travel on selected county and state roads (excluding Interstates and load-posted bridges unless they are the only access).
MCD-LOC01 vs. Surety Bond (Form 1753): Which Should You Choose?
| Feature | MCD-LOC01 (Letter of Credit) | Form 1753 Surety Bond |
|---|---|---|
| Issuer | Texas-regulated bank | Surety/insurance company |
| Cost | Bank fees (varies; often lower ongoing) | Premium (typically ~$100–$300/year) |
| Collateral required | Usually none (bank line of credit) | None (surety underwrites) |
| Renewal | Automatic unless 30-day notice | Must be renewed manually |
| TxDMV acceptance | Yes — original only | Yes — original signed/sealed |
| Best for | Companies with strong banking relationships | Most small carriers |
Many carriers choose the LOC for simplicity and automatic renewal.
How to Complete and Submit the MCD-LOC01 Form (Step-by-Step)?
Step 1: Contact a bank subject to Texas laws (FDIC-insured institutions in Texas qualify).
Step 2: Provide the bank with the official MCD-LOC01 PDF. The bank must not alter any text — they fill in the blanks only.
Required fields the bank completes:
- Date and Letter of Credit Number
- Name and address of issuing bank
- Name and address of customer/principal (your company)
- Effective date (on or before permit issuance date)
- Authorized signature + printed name/title of bank officer
- Expiration/renewal language (standard auto-renewal clause)
Step 3: Obtain the original signed document (no copies).
Step 4: Submit with your permit application:
- Mail to: Texas Department of Motor Vehicles, Attn: MCD – Permits, 4000 Jackson Ave., Austin, TX 78731
(or use the address on your MCD-1751 application) - Include with Form MCD-1751 (Over Axle/Over Gross Weight Tolerance Permit Application) and payment.
Important rules:
- Original only — facsimiles or PDFs rejected.
- After any draw, the bank must notify TxDMV and you in writing. You then have 31 days to restore the LOC or replace it, or permits expire automatically.
Free Official MCD-LOC01 PDF Download
Direct download (hosted by TxDMV):
Download MCD-LOC01 Irrevocable Standby Letter of Credit PDF
This is the exact 3-page form + instructions (Rev. 08/21) you must use. Always verify on txdmv.gov for the latest version before submitting.
You will also need:
- Over Axle and Over Gross Weight Tolerance Permit Application (MCD-1751)
- Instructions for the LOC (included in the PDF above)
After Submission: What Happens Next?
TxDMV reviews the original LOC. Once approved and on file, you can apply for annual permits through TxPROS (online system) or by mail. The LOC stays active as long as you hold active tolerance permits.
If a county draws on the LOC for damages:
- Bank pays within one business day.
- Bank notifies TxDMV and you.
- You must restore the full $15,000 within 31 days or lose permit privileges.
Frequently Asked Questions (FAQs)
Is the MCD-LOC01 mandatory?
No — the $15,000 surety bond (Form 1753) is the alternative. You only need one or the other.
Can I use any bank?
Only banks subject to Texas laws. Out-of-state banks generally do not qualify unless they meet specific criteria.
How long is the LOC valid?
It is effective from the stated date and automatically renews yearly unless the bank notifies TxDMV 30+ days in advance.
What if my permit is for agricultural products only?
Many ag haulers (including timber in some cases) are exempt from the financial instrument requirement — confirm on your MCD-1751 application or with TxDMV at 800-299-1700.
Where do I mail the original LOC?
Texas Department of Motor Vehicles, Attn: MCD – Permits, 4000 Jackson Ave., Austin, TX 78731.
Can I submit electronically?
No. Original hard copy required.
Conclusion: Secure Your Texas Tolerance Permits Faster with MCD-LOC01
The MCD-LOC01 Irrevocable Standby Letter of Credit is a straightforward, TxDMV-approved way to meet the $15,000 financial responsibility requirement for Over Axle/Over Gross Weight Tolerance and timber permits. By using the exact official form and following submission rules, you avoid delays and keep your operations compliant across Texas counties.
Download the MCD-LOC01 PDF now and contact your Texas bank today to get it issued. For permit applications, visit the official TxDMV Motor Carrier Division pages or call 800-299-1700.
Official sources used:
- TxDMV MCD-LOC01 Form & Instructions (Rev. 08/21)
- TxDMV Annual Over Axle/Over Gross Weight Tolerance Permit page
- TxDMV OS/OW Permits Forms Listing
- Texas Transportation Code §§623.011–623.323
Stay compliant, protect county roads, and keep your heavy-haul business moving legally in Texas. Questions? Comment below or contact TxDMV directly.
Last updated: March 2026 — always double-check txdmv.gov for any revisions.
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