Texas Public Official Bonds & MUD Director Bonds
Newly elected or appointed to a Texas office that requires a bond? Lavon Insurance helps county officers, city officials and municipal utility district (MUD) directors get the official bond their office requires. In addition, you can start your public official bond online.
Before Taking Office
Most official bonds must be in place before duties begin
$10,000 MUD Bond
Required of covered district directors
Filed With Your Oath
Under Texas Government Code §604.001
Set by Statute
So, the amount depends on your office
What Is a Texas Public Official Bond?
A Texas public official bond is a surety bond that guarantees an elected or appointed official will faithfully perform the duties of the office. Generally, it involves three parties: the official who is bonded, the governmental entity that requires the bond and the surety company that issues it.
Depending on the office, people also call it an official bond, faithful performance bond, oath of office bond, county officer bond or MUD director bond.
Texas Government Code Chapter 604 contains general rules for official bonds. For example, §604.001 says an officer required by law to give an official bond must file it with the oath of office. However, the specific statute for each office sets whether a bond is required and how much.
Who Needs a Public Official Bond in Texas?
There’s no single bond requirement for every Texas official. Instead, the law governing each position decides.
County Officers
For example, a county treasurer must post a bond before taking office, and other county officers may have their own requirements.
City Officials
Similarly, city charters and ordinances may require bonds from certain municipal officers and employees.
MUD & District Directors
Directors of covered water districts, including most MUDs, need a $10,000 bond under Texas Water Code §49.055.
Officials Handling Funds
Also, positions responsible for public money or property often have specific statutory bonds.
Texas MUD Director Bonds: $10,000 Under Water Code §49.055
Municipal utility districts, commonly called MUDs, provide water, wastewater, drainage and related services, especially in fast-growing communities. If you’ve recently been elected or appointed as a director, you’ll likely need a MUD public official bond.
Under Texas Water Code §49.055, each covered director must execute a $10,000 bond payable to the district and conditioned on faithful performance of the director’s duties. Moreover, the board approves the bonds, and the district pays for them.
Before performing any duties, the director also makes the constitutional sworn statement and takes the oath of office. Then the bond and oath are filed with the district, and a duplicate of the oath goes to the Secretary of State within 10 days after it’s signed.
- Bond amount: $10,000 per director
- Payable to the district
- Conditioned on faithful performance of duties
- Approved by the district board
- Paid for by the district
- Doesn’t apply to special water authorities
Texas Public Official Bond Amounts by Office
Bond amounts and filing procedures aren’t the same for every position. Here are two examples set directly by Texas statute.
| Office | Statute | Bond Amount | Payable To |
|---|---|---|---|
| MUD or covered district director | Water Code §49.055 | $10,000 | The district |
| County treasurer | Local Government Code §83.002 | Set by commissioners court, from $5,000 to $500,000 | The county judge |
| Other offices | The statute, charter or order for that office | Varies | Varies |
Because there’s no universal official bond, start with the statute, order or instructions from the entity requiring the bond. In particular, note the office name, bond amount, obligee and any required bond form.
What Does a Public Official Bond Cover, and What Does It Cost?
Faithful Performance
Most official bonds guarantee faithful performance of the office’s duties. That’s why the requirement is usually tied to taking office, filing an oath or handling public funds and records.
Not Personal Insurance
A public official bond protects the public entity, not the official. Consequently, if the surety pays a valid claim, the official may have to repay it.
Bond Amount vs. Premium
The bond amount is set by law or the governmental entity, whereas the premium is what’s paid for the bond. Generally, pricing depends on the bond type, amount and the surety’s underwriting.
How to Get a Public Official Bond in Texas
Once you know the office, amount and form, getting bonded is straightforward.
Confirm the Requirement
First, identify the office, bond amount, obligee and any required bond form.
Select Your Bond
Next, choose either the Texas Public Official Bond or the MUD Public Official Bond online.
Apply
Then provide the information the surety requests about you and the office.
File With Your Oath
Finally, once issued, file the bond with your oath as the governmental entity directs.
Public Official Surety Bonds vs. Municipal Bonds
Public Official Surety Bond
Guarantees an official’s faithful performance of public duties. This is the bond offered on this page.
Municipal or Public Finance Bond
By contrast, these are debt securities that governments issue and investors buy. Therefore, they’re a different financial product entirely.
Frequently Asked Questions
What is a public official bond used for?
A public official bond is a surety bond that guarantees an elected or appointed official will faithfully perform the duties of the office. The exact obligation depends on the governing statute and bond form.
Who needs a public official bond in Texas?
Only offices with a bonding requirement need one. Because Texas statutes set different requirements for different offices, check the law or instructions for your position before buying a bond.
What is a MUD director bond in Texas?
A MUD director bond is the $10,000 bond Texas Water Code §49.055 requires from each director of a covered municipal utility district. It’s payable to the district and conditioned on faithful performance of the director’s duties.
Who pays for a Texas MUD director bond?
Under Texas Water Code §49.055, the district pays for its directors’ bonds, and the board approves them.
Is every Texas public official bond $10,000?
No. The $10,000 amount applies to covered district directors under Texas Water Code §49.055. For example, a county treasurer’s bond is set by the commissioners court between $5,000 and $500,000.
Where do I file my official bond?
Under Texas Government Code §604.001, an officer required to give an official bond files it with the oath of office. Otherwise, follow the specific filing instructions for your office or district.
Is a public official bond insurance for the official?
No. A surety bond protects the governmental entity, not the official. As a result, if the surety pays a valid claim, the official may have to repay it.
Can I buy a Texas public official bond online?
Yes. You can start online through Lavon Insurance’s bond platform, which includes both a Texas Public Official Bond option and a MUD Public Official Bond option.
What information should I have before applying?
Have the office name, required bond amount, the governmental entity requiring the bond and any official bond form or statute ready when you apply.
Is a public official bond the same as a municipal bond?
No. A public official bond guarantees an official’s duties, whereas municipal and public finance bonds are debt securities issued to fund government projects or operations.
Other Texas Court & Official Bonds
Texas Notary Bonds
Likewise, Texas notaries public need a $10,000 bond.
Texas Notary Bond →Texas Probate Bonds
Executor and administrator bonds for Texas estates.
Texas Probate Bond →Texas Appeal Bonds
Supersedeas bonds to suspend a judgment during an appeal.
Texas Appeal Bond →All Surety Bonds
Otherwise, browse every bond type we offer in Texas.
View All Surety Bonds →Get Your Texas Public Official Bond
Whether you need a standard Texas public official bond or a MUD director bond, start your application online today, or call us for help.
Bond availability, approval, premium, limits and underwriting vary by surety company and applicant. A bond isn’t issued until approved by the surety. Statutory summaries are general information, not legal advice; confirm the required bond amount and form with the governmental entity requiring the bond.