Texas Administrative Code
Title 43 - TRANSPORTATION
Part 10 - TEXAS DEPARTMENT OF MOTOR VEHICLES
Chapter 215 - MOTOR VEHICLE DISTRIBUTION
Subchapter D - GENERAL DISTINGUISHING NUMBERS AND IN-TRANSIT LICENSES
Section 215.137 - Surety Bond

Universal Citation: 43 TX Admin Code ยง 215.137

Current through Reg. 49, No. 38; September 20, 2024

(a) The surety bond required by Transportation Code, § 503.033 shall be in the legal business name in which the dealer's GDN will be issued and shall contain the complete physical address of each location licensed under the GDN that the surety bond is intended to cover.

(b) A surety bond executed by an agent representing a bonding company or surety must be supported by an original power of attorney from the bonding company or surety.

(c) The identity of the obligee on a surety bond or a rider to a surety bond must be approved by the department. An obligee may be identified as:

(1) a person who obtains a court judgment assessing damages and attorney's fees for an act or omission on which the bond is conditioned; or

(2) unknown.

(d) A bonding company that pays any claim against a surety bond shall immediately report the payment to the department.

(e) A bonding company shall give written notice to the department 30 days prior to canceling any surety bond.

(f) The surety bond required by this section does not apply to a:

(1) franchised motor vehicle dealer licensed by the department;

(2) franchised motorcycle dealer licensed by the department;

(3) franchised house trailer or travel trailer dealer licensed by the department; or

(4) trailer or semitrailer dealer licensed by the department.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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