SECTION 37.511. Surety Bond Guaranteeing Payment for Liability

(a) An owner or operator may satisfy the requirements of financial assurance for liability as specified in Subchapter E of this chapter (relating to Financial Assurance Requirements for Liability Coverage) by obtaining a surety bond which conforms to the requirements of this section, in addition to the requirements specified in Subchapter A of this chapter (relating to General Financial Assurance Requirements), and submitting a signed duplicate original of the bond to the executive director.

(b) The surety company issuing the bond shall be among those listed as acceptable sureties on Federal bonds in the most recent Circular 570 of the United States Department of the Treasury.

(c) The wording of the surety bond must be identical to the wording specified in §37.611 of this title (relating to Payment Bond for Liability).

(d) A surety bond may be used to satisfy the requirements of Subchapter E of this chapter only if the Attorneys General or Insurance Commissioners of the state in which the surety is incorporated, and the State of Texas have submitted a written statement to the executive director that a surety bond executed as described in this subchapter and §37.611 of this title is a legally valid and enforceable obligation in that state.

Source Note: The provisions of this §37.511 adopted to be effective December 30, 1996, 21 TexReg 12297; amended to be effective March 21, 2000, 25 TexReg 2347