Texas Property Code 113.058 – Bond
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(a) A corporate trustee is not required to provide a bond to secure performance of its duties as trustee.
(b) Unless the instrument creating the trust provides otherwise, a noncorporate trustee must give bond:
(1) payable to the trust estate of the trust, the registry of the court, or each person interested in the trust, as their interests may appear; and
(2) conditioned on the faithful performance of the trustee’s duties.
Terms Used In Texas Property Code 113.058
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
(c) The bond must be in an amount and with the sureties required by order of a court in a proceeding brought for this determination.
(d) Any interested person may bring an action to increase or decrease the amount of a bond, require a bond, or substitute or add sureties. Notwithstanding Subsection (b), for cause shown, a court may require a bond even if the instrument creating the trust provides otherwise.
(e) The trustee shall deposit the bond with the clerk of the court that issued the order requiring the bond. A suit on the bond may be maintained on a certified copy. Appropriate proof of a recovery on a bond reduces the liability of the sureties pro tanto.
(f) Failure to comply with this section does not make void or voidable or otherwise affect an act or transaction of a trustee with any third person.