Surety Bond

Sec. 886.108. SURETY BOND. (a) A local mutual aid association's officer responsible for the funds of the association shall file with the department a surety bond. (b) The surety bond must be: (1) executed by a surety company authorized to do business in this state; (2) satisfactory to the department; and (3) payable in an amount and conditioned as specified by Section 887.054. (c) This section does not apply to a local mutual aid association that: (1) has a total membership of 1,000 or fewer members; (2) charges $1 or less each for annual dues or assessments; and (3) charges $2.50 or less for a membership fee. (d) An association exempted under Subsection (c) shall file with the department a bond in the amount of $1,000 and conditioned as provided by Section 887.054. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.