Texas Insurance Code 3503.002 – Execution of Obligation by Surety Company
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(a) A surety company authorized to engage in business in this state may execute an obligation.
(b) Except as provided by § 3503.004 or 3503.005, the execution of an obligation by a surety company under Subsection (a) is in full compliance with each law, charter, ordinance, or rule that requires:
(1) the obligation to be executed by one or more sureties; or
(2) the executing sureties to possess any qualification, including the requirement that a surety be a resident, householder, or freeholder.
Terms Used In Texas Insurance Code 3503.002
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Rule: includes regulation. See Texas Government Code 311.005
(c) Each municipality, board, body, organization, court, public officer, and head of department shall accept and treat an obligation executed by a surety company under Subsection (a) as fully complying with each law, charter, ordinance, or rule described by Subsection (b).