Tex.
Est. Code Section 1352.055
Surety Bond; Discharge of Sureties
(a)
Before a hearing under Section 1352.054 (Hearing; Requirements to Mortgage Minor’s Interest) is held, the parent or managing conservator shall file with the county clerk a surety bond. The bond must be:(1)
in an amount at least equal to two times the amount of the proposed home equity loan;(2)
payable to and approved by the court; and(3)
conditioned on the parent or managing conservator:(A)
using the proceeds of the home equity loan attributable to the minor’s interest solely for the purposes authorized by Section 1352.056 (Use of Proceeds); and(B)
making payments on the minor’s behalf toward the outstanding balance of the home equity loan.(b)
After the first anniversary of the date a parent or managing conservator executes a home equity loan authorized under this subchapter, the court may, on motion of the borrower, reduce the amount of the surety bond required under this section to an amount that is not less than the loan’s outstanding balance.(c)
The court may not discharge the person’s sureties from all further liability under a surety bond until the court:(1)
approves the filing of the parent’s or managing conservator’s reports required under Sections 1352.057 (Annual Report) and 1352.058 (Sworn Report of Expenditures);(2)
finds that the parent or managing conservator used loan proceeds resulting from the minor’s interest solely for the purposes authorized by Section 1352.056 (Use of Proceeds); and(3)
is presented with satisfactory evidence that the home equity loan has been repaid and is no longer considered an outstanding obligation.
Source:
Section 1352.055 — Surety Bond; Discharge of Sureties, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.1352.htm#1352.055 (accessed May 11, 2024).
