Tex. Civ. Practice & Remedies Code Section 43.002
Suit on Accrued Right of Action

(a)

When a right of action accrues on a contract for the payment of money or performance of an act, a surety on the contract may, by written notice, require the obligee to without delay bring a suit on the contract.

(b)

A surety who provides notice to an obligee under Subsection (a) is discharged from all liability on the contract if the obligee:

(1)

is not under a legal disability; and

(2)

does not:

(A)

bring a suit on the contract during:

(i)

the first term of court after receipt of the notice; or

(ii)

the second term of court if good cause is shown for the delay; or

(B)

prosecute the suit to judgment and execution.

Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.11, eff. April 1, 2009.