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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 12. OTHER COVERAGE |
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Chapter 3503. SURETY BONDS AND RELATED INSTRUMENTS |
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Subchapter A. CERTAIN REQUIRED OR PERMITTED OBLIGATIONS |
Sec. 3503.005. ADDITIONAL REQUIREMENTS FOR CERTAIN BONDS
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(a) A bond that is made, given, tendered, or filed under Chapter 53, Property Code, or Chapter 2253, Government Code, may be executed only by a surety company that is authorized to write surety bonds in this state. If the amount of the bond exceeds $100,000, the surety company must also:
(1) hold a certificate of authority from the United States secretary of the treasury to qualify as a surety on obligations permitted or required under federal law; or
(2) have obtained reinsurance for any liability in excess of $1 million from a reinsurer that:
(A) is an authorized reinsurer in this state; or
(B) holds a certificate of authority from the United States secretary of the treasury to qualify as a surety or reinsurer on obligations permitted or required under federal law.
(b) To determine whether the surety on the bond or the reinsurer holds a certificate of authority from the United States secretary of the treasury, a party may conclusively rely on the list published in the Federal Register by the United States Department of the Treasury, covering the date on which the bond was executed, of the companies holding certificates of authority as acceptable sureties on federal bonds and as acceptable reinsuring companies. A purchaser, insurer of title, or lender acquiring or insuring an interest in or title to real property may also conclusively rely on, and is protected by, a statement on a recorded bond or a sworn, recorded statement by the surety that refers to the specific recorded bond and states that, at the time the bond was executed, the surety complied with Subsection (a)(1) or (2).