Texas Public Official Bonds
Certain elected or appointed public officials may be required by Texas law to provide a surety bond before beginning the duties of office.
Lavon Insurance can help you find a Texas public official bond, including the available MUD Public Official Bond option for qualifying municipal utility district officials.
What Is a Public Official Bond Used For?
A public official bond is a type of surety bond used to guarantee that a bonded public official will faithfully perform the duties associated with the office.
The bond generally involves three parties: the public official who is bonded, the governmental entity or other party requiring the bond, and the surety company issuing it.
Unlike an ordinary insurance policy designed primarily to protect the policyholder, a public official surety bond in Texas is intended to provide financial assurance associated with the official’s performance of duties required by law.
Texas Government Code Chapter 604 contains general provisions concerning official bonds for officers who are required by law to furnish one. The particular office, statute or governmental entity determines the actual bond requirement.
Who May Need a Texas Public Official Bond?
There is no single bond requirement that applies to every Texas public official. Bond requirements are established by the law governing the particular position.
Local Government Officials
Certain county, municipal and other local officials may be required to provide an official bond before performing their duties.
Officials Handling Public Funds
Some positions involving responsibility for public money or governmental property have specific statutory bonding requirements.
MUD Directors
Directors of certain Texas municipal utility districts are subject to a specific public official bond requirement under the Texas Water Code.
Texas MUD Public Official Bonds
If you have recently been elected or appointed as a director of a Texas municipal utility district, the MUD Public Official Bond option may be the bond you are looking for.
Municipal utility districts, commonly called MUDs, are governmental districts that can provide services such as water, wastewater, drainage and related infrastructure.
$10,000 Public Official Bond for Covered District Directors
Texas Water Code Section 49.055 provides that, before beginning to perform the duties of office, each covered district director must execute a $10,000 bond payable to the district and conditioned on faithful performance of the director’s duties.
The directors’ bonds are approved by the board and paid for by the district. The statute also addresses the director’s sworn statement and oath of office.
- Bond amount: $10,000 for covered district directors
- Bond is payable to the district
- Conditioned on faithful performance of duties
- Bond is approved by the district board
- District pays for the directors’ bonds
Texas Water Code Section 49.055 does not apply to special water authorities. Confirm the statute or requirement applicable to your particular district and office before purchasing a bond.
Different Texas Offices Can Have Different Bond Requirements
A person searching for a Texas public official bond should first identify the exact office and statutory bond requirement.
Bond amounts and filing procedures are not identical for every position. For example, Texas law separately establishes requirements for certain county officers, district directors and other government positions.
County Treasurer Example
Texas law requires a county treasurer, before beginning the duties of office, to execute a surety bond. The amount is established by the commissioners court within statutory limits, and the bond is conditioned on faithful performance of the treasurer’s duties.
MUD Director Example
Covered district directors under Texas Water Code Section 49.055 have a specifically stated $10,000 bond requirement before beginning their duties.
What Does a Public Official Bond Cover?
The exact obligation depends on the statute and bond form, but public official bonds commonly guarantee the faithful performance of duties associated with the bonded office.
That is why the bond requirement may be tied to taking office, filing an oath or assuming responsibility for government funds, property or records.
If your office has supplied a particular Texas public official bond form, provide that form when applying so that the surety can review the required wording and obligation.
How to Get a Public Official Bond in Texas
Once you know the office, required bond amount and required form, obtaining the appropriate bond can be straightforward.
Confirm the Requirement
Determine the office, required bond amount, obligee and any required statutory or governmental bond form.
Select the Bond
Use our online platform to select either the appropriate Texas Public Official Bond or the MUD Public Official Bond option.
File as Required
Once issued, follow the instructions of the governmental entity regarding approval, filing and retention of the bond.
Looking for a Texas Bond Office?
People sometimes search for a Texas bond office when they have been told by a city, county, district or other governmental entity that an official bond is required.
There is not one universal public official bond for every government position. Start with the document, statute or instructions supplied by the entity requiring the bond.
The most useful information is usually the name of the office, bond amount, obligee and any required bond form. With that information, you can search for the appropriate surety bond rather than guessing which public official bond applies.
Public Official Surety Bonds vs. Public Finance Bonds
The word bond is used for very different financial products.
A public official surety bond guarantees an obligation associated with an official’s performance of public duties.
By comparison, someone searching for a Texas public finance bond buyer is generally looking for information related to municipal or governmental debt securities purchased as investments.
Those public finance securities are different from the Texas public official surety bonds offered through this page.
How Much Does a Texas Public Official Bond Cost?
The required bond amount and the price paid for the bond are two different things.
The bond amount is established by the statute, governmental entity or other requirement governing the office. The premium is the amount paid for the surety company to issue the approved bond.
Pricing and underwriting requirements vary depending on the type of public official bond and the surety company.
Frequently Asked Questions
What is a public official bond used for?
A public official bond is a surety bond used to guarantee the bonded official’s performance of duties required by law or the terms of the office. The exact obligation depends on the governing statute and bond form.
Who needs a public official bond in Texas?
Only offices subject to a bonding requirement need a public official bond. Texas statutes establish different requirements for different public offices, so the particular position should be reviewed before purchasing a bond.
What is a MUD Public Official Bond in Texas?
A MUD Public Official Bond can refer to the bond required from directors of covered Texas municipal utility districts. Texas Water Code Section 49.055 generally requires each covered director to execute a $10,000 bond payable to the district and conditioned on faithful performance of the director’s duties.
Who pays for a Texas MUD director bond?
For directors subject to Texas Water Code Section 49.055, the statute provides that the directors’ bonds are paid for by the district.
Is every Texas public official bond $10,000?
No. The $10,000 amount applies to covered district directors under Texas Water Code Section 49.055. Other public offices can have completely different bond amounts and requirements.
Is a public official bond insurance for the official?
A surety bond is different from ordinary insurance. It guarantees an obligation of the bonded official to the entity or parties protected by the bond rather than functioning primarily as personal insurance for the official.
Can I buy a Texas public official bond online?
You can begin the process online through Lavon Insurance’s surety bond platform. The available Texas Public Official search includes both a general Texas Public Official option and a MUD Public Official option.
What information should I have before applying?
Have the name of the public office, required bond amount, governmental entity requiring the bond and any official bond form or statutory requirement available when applying.
Is a public official bond the same as a municipal bond?
No. A public official surety bond guarantees an obligation associated with an official’s duties. Municipal and public finance bonds are debt securities issued to finance governmental projects or operations and are a different type of financial instrument.
Get Your Texas Public Official Bond
Whether you need the standard Texas Public Official Bond option or a MUD Public Official Bond, use our online surety platform to find the appropriate bond and begin your application.
Bond availability, approval, premium, limits and underwriting requirements vary by surety company and applicant. Confirm the required bond amount and form with the governmental entity requiring the bond.