Texas Estates Code 1352.055 – Surety Bond; Discharge of Sureties
(a) Before a hearing under § 1352.054 is held, the parent or managing conservator shall file with the county clerk a surety bond. The bond must be:
(1) in an amount at least equal to two times the amount of the proposed home equity loan;
(2) payable to and approved by the court; and
(3) conditioned on the parent or managing conservator:
(A) using the proceeds of the home equity loan attributable to the minor‘s interest solely for the purposes authorized by § 1352.056; and
(B) making payments on the minor’s behalf toward the outstanding balance of the home equity loan.
(b) After the first anniversary of the date a parent or managing conservator executes a home equity loan authorized under this subchapter, the court may, on motion of the borrower, reduce the amount of the surety bond required under this section to an amount that is not less than the loan’s outstanding balance.
Terms Used In Texas Estates Code 1352.055
- Court: means and includes:
(1) a county court in the exercise of its probate jurisdiction;
(2) a court created by statute and authorized to exercise original probate jurisdiction; and
(3) a district court exercising original probate jurisdiction in a contested matter. See Texas Estates Code 22.007 - Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Minor: means a person younger than 18 years of age who:
(1) has never been married; and
(2) has not had the disabilities of minority removed for general purposes. See Texas Estates Code 22.022 - Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a natural person and a corporation. See Texas Estates Code 22.027
- Surety: includes a personal surety and a corporate surety. See Texas Estates Code 22.032
(c) The court may not discharge the person‘s sureties from all further liability under a surety bond until the court:
(1) approves the filing of the parent’s or managing conservator’s reports required under Sections 1352.057 and 1352.058;
(2) finds that the parent or managing conservator used loan proceeds resulting from the minor’s interest solely for the purposes authorized by § 1352.056; and
(3) is presented with satisfactory evidence that the home equity loan has been repaid and is no longer considered an outstanding obligation.