Texas Government Code 606.025 – Guarantees for Payment
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Texas Government Code 606.025
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Rule: includes regulation. See Texas Government Code 311.005
The retirement system by rule may require guarantees to create adequate security that a political subdivision will be financially responsible for its payments for at least the minimum period required by federal requirements to precede social security coverage cancellation. The guarantees may be in the form of:
(1) surety bonds;
(2) advance payments into an escrow account;
(3) detailed representations and assurances of priority dedication; or
(4) another legal undertaking.