SECTION 74.3. Surety Bond, Surety Account

(a) If a credit services organization is required to obtain a surety bond or establish a surety account, the surety bond or surety account shall be for an amount of $10,000. The surety bond must be issued by a surety company authorized to do business in Texas. The surety account must be established and maintained at a federally insured bank or savings and loan association located in Texas and notification of the depository, the trustee, and the account number shall be filed with the secretary of state. See Forms 2802, 2803.

(b) The surety bond or account of a credit services organization must be maintained until the second anniversary of the date on which the organization ceases operations at the location for which the surety bond was established.

(1) The surety bond or account is considered "maintained" if the credit services organization has an established surety bond or surety account in the requisite amount and has filed the required information stated in subsection (a) of this section for the established surety bond or surety account with the secretary of state.

(2) The secretary of state will authorize return of funds from a previously established surety account upon a credit services organization's filing the required information stated in subsection (a) of this section for a newly established surety account.

Source Note: The provisions of this §74.3 adopted to be effective January 6, 2010, 35 TexReg 61