(a) A contractor shall execute a bond:
(1) in an amount determined by the board, not to exceed the contract price;
(2) payable to the district and approved by the board; and
(3) conditioned on the faithful performance of the contract.
(b) The bond must provide that a contractor pay to the district all damages sustained as a result of the contractor’s default on the contract.

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Terms Used In Texas Special District Local Laws Code 21.255

  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.

(c) The bond shall be deposited in the district’s depository. A copy of the bond shall be kept in the district’s office.