Texas Insurance Code 3503.151 – Venue of Suit On Certain Bonds or Other Obligations
(a) This section applies to:
(1) a bond or other obligation of an insurance company authorized to engage in business in this state and to act as surety and guarantor of the fidelity of employees, trustees, executors, administrators, guardians, or others appointed to, or assuming the performance of, any public or private trust under appointment of a court or tribunal, or under contract between private individuals or corporations; or
(2) a bond that may be required:
(A) to be filed in a judicial proceeding;
(B) to guarantee a contract or undertaking between:
(i) individuals;
(ii) private corporations;
(iii) individuals and corporations; or
(iv) individuals or private corporations and the state, a municipal corporation, or a county; or
(C) of a state, county, municipal, or district official, including a school district official.
(b) A proper court in the county in which a bond or other obligation described by Subsection (a) is filed has jurisdiction of a suit instituted on the bond or obligation.
Terms Used In Texas Insurance Code 3503.151
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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.