Tex. Prop. Code Section 53.202
Bond Requirements

The bond must:

(1)

be in a penal sum at least equal to the total of the original contract amount;

(2)

be in favor of the owner;

(3)

have the written approval of the owner endorsed on it;

(4)

be executed by:

(A)

the original contractor as principal; and

(B)

a corporate surety authorized and admitted to do business in this state and licensed by this state to execute bonds as surety, subject to Section 1, Chapter 87, Acts of the 56th Legislature, Regular Session, 1959 (Article 7.19-1, Vernon’s Texas Insurance Code);

(5)

be conditioned on prompt payment for all labor, subcontracts, materials, specially fabricated materials, and normal and usual extras not exceeding 15 percent of the contract price; and

(6)

clearly and prominently display on the bond or on an attachment to the bond:

(A)

the name, mailing address, physical address, and telephone number, including the area code, of the surety company to which any notice of claim should be sent; or

(B)

the toll-free telephone number maintained by the Texas Department of Insurance under Subchapter B (Department Toll-free Number for Information and Complaints), Chapter 521 (Consumer Information and Complaints), Insurance Code, and a statement that the address of the surety company to which any notice of claim should be sent may be obtained from the Texas Department of Insurance by calling the toll-free telephone number.
Acts 1983, 68th Leg., p. 3551, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 29, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1132, Sec. 2, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 380, Sec. 5, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.158, eff. September 1, 2005.

Source: Section 53.202 — Bond Requirements, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­53.­htm#53.­202 (accessed Jun. 5, 2024).

53.001
Definitions 53.002
More than One Original Contractor 53.003
Notices 53.021
Persons Entitled to Lien 53.022
Property to Which Lien Extends 53.023
Payment Secured by Lien 53.024
Limitation on Subcontractor’s Lien 53.025
Limitation on Ordinary Retainage Lien 53.026
Sham Contract 53.051
Necessary Procedures 53.052
Filing of Affidavit 53.054
Contents of Affidavit 53.055
Notice of Filed Affidavit 53.056
Derivative Claimant: Notice to Owner and Original Contractor 53.057
Derivative Claimant: Notice of Claim for Unpaid Retainage 53.081
Authority to Withhold Funds for Benefit of Claimants 53.082
Time for Which Funds Are Withheld 53.084
Owner’s Liability 53.085
Affidavit Required 53.101
Funds Required to Be Reserved 53.102
Payment Secured by Reserved Funds 53.103
Lien on Reserved Funds 53.104
Preferences 53.105
Owner’s Liability for Failure to Reserve Funds 53.106
Affidavit of Completion 53.107
Notice Relating to Termination of Work or Abandonment of Performance by Original Contractor or Owner 53.121
Preference over Other Creditors 53.122
Equality of Mechanic’s Liens 53.123
Priority of Mechanic’s Lien over Other Liens 53.124
Inception of Mechanic’s Lien 53.151
Enforcement of Remedies Against Money Due Original Contractor or Subcontractor 53.152
Release of Claim or Lien 53.153
Defense of Actions 53.154
Foreclosure 53.155
Transfer of Property Sold 53.156
Costs and Attorney’s Fees 53.157
Discharge of Lien 53.158
Period for Bringing Suit to Foreclose Lien 53.159
Obligation to Furnish Information 53.160
Summary Motion to Remove Invalid or Unenforceable Lien 53.161
Bond Requirements After Order to Remove 53.162
Revival of Removed Lien 53.171
Bond 53.172
Bond Requirements 53.173
Notice of Bond 53.174
Recording of Bond and Notice 53.175
Action on Bond 53.201
Bond 53.202
Bond Requirements 53.203
Recording of Bond and Contract 53.204
Reliance on Record 53.205
Enforceable Claims 53.206
Perfection of Claim 53.207
Owner’s Notice of Claim to Surety 53.208
Action on Bond 53.210
Claims in Excess of Bond Amount 53.211
Attempted Compliance 53.231
Lien 53.232
To Whom Notice Given 53.233
Contents of Notice 53.234
Time for Notice 53.235
Official to Retain Funds 53.236
Bond for Release of Lien 53.237
Bond Requirements 53.238
Notice of Bond 53.239
Action on Bond 53.251
Procedures for Residential Construction Projects 53.254
Contractual Requirements for Lien on Homestead 53.255
Disclosure Statement Required for Residential Construction Contract 53.256
List of Subcontractors and Suppliers 53.257
Provisions Related to Closing of Loan for Construction of Improvements 53.258
Disbursements of Funds 53.259
Final Bills-paid Affidavit Required 53.260
Conveyance to Contractor Not Required 53.281
Waiver and Release of Lien or Payment Bond Claim 53.282
Conditions for Waiver, Release, or Impairment of Lien or Payment Bond Claim 53.283
Unconditional Waiver and Release: Payment Required 53.284
Forms for Waiver and Release of Lien or Payment Bond Claim 53.286
Public Policy 53.287
Certain Agreements Exempt
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 53.202’s source at texas​.gov