Texas Occupations Code 402.404 – Surety Bonding
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(a) A sole proprietor, partnership, corporation, or other legal entity engaged in the fitting and dispensing of hearing instruments shall file with the department security in a form provided by Subsection (b) in the amount of $10,000 and conditioned on the promise to pay all:
(1) taxes and contributions owed to the state and political subdivisions of the state by the entity; and
(2) judgments that the entity may be required to pay for:
(A) negligently or improperly dispensing hearing instruments; or
(B) breaching a contract relating to the dispensing of hearing instruments.
(b) The security may be a bond, a cash deposit, or another negotiable security acceptable to the department.
Terms Used In Texas Occupations Code 402.404
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) A bond required by this section remains in effect until canceled by action of the surety, the principal, or the department. A person must take action on the bond not later than the third anniversary of the date the bond is canceled.