Tex. Local Government Code § 212.0106
This is the official text of Tex. Local Government Code § 212.0106, part of Texas’s Local Government Code — governs the powers and operations of Texas cities and counties.
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§ 212.0106. BOND REQUIREMENTS AND OTHER FINANCIAL GUARANTEES IN CERTAIN COUNTIES.
Official statutory text
(a) This section applies only to a person described by Section 212.0105(a).
(b) If the governing body of a municipality in a county described by Section 212.0105(a)(1)(A) or (B) requires the owner of the tract to execute a bond, the owner must do so before subdividing the tract unless an alternative financial guarantee is provided under Subsection (c). The bond must:
(1) be payable to the presiding officer of the governing body or to the presiding officer's successors in office;
(2) be in an amount determined by the governing body to be adequate to ensure the proper construction or installation of the water and sewer service facilities to service the subdivision but not to exceed the estimated cost of the construction or installation of the facilities;
(3) be executed with sureties as may be approved by the governing body;
(4) be executed by a company authorized to do business as a surety in this state if the governing body requires a surety bond executed by a corporate surety; and
(5) be conditioned that the water and sewer service facilities will be constructed or installed:
(A) in compliance with the model rules adopted under Section 16.343, Water Code; and
(B) within the time stated on the plat or on the document attached to the plat for the subdivision or within any extension of that time.
(c) In lieu of the bond an owner may deposit cash, a letter of credit issued by a federally insured financial institution, or other acceptable financial guarantee.
(d) If a letter of credit is used, it must:
(1) list as the sole beneficiary the presiding officer of the governing body; and
(2) be conditioned that the water and sewer service facilities will be constructed or installed:
(A) in compliance with the model rules adopted under Section 16.343, Water Code; and
(B) within the time stated on the plat or on the document attached to the plat for the subdivision or within any extension of that time.
(b) If the governing body of a municipality in a county described by Section 212.0105(a)(1)(A) or (B) requires the owner of the tract to execute a bond, the owner must do so before subdividing the tract unless an alternative financial guarantee is provided under Subsection (c). The bond must:
(1) be payable to the presiding officer of the governing body or to the presiding officer's successors in office;
(2) be in an amount determined by the governing body to be adequate to ensure the proper construction or installation of the water and sewer service facilities to service the subdivision but not to exceed the estimated cost of the construction or installation of the facilities;
(3) be executed with sureties as may be approved by the governing body;
(4) be executed by a company authorized to do business as a surety in this state if the governing body requires a surety bond executed by a corporate surety; and
(5) be conditioned that the water and sewer service facilities will be constructed or installed:
(A) in compliance with the model rules adopted under Section 16.343, Water Code; and
(B) within the time stated on the plat or on the document attached to the plat for the subdivision or within any extension of that time.
(c) In lieu of the bond an owner may deposit cash, a letter of credit issued by a federally insured financial institution, or other acceptable financial guarantee.
(d) If a letter of credit is used, it must:
(1) list as the sole beneficiary the presiding officer of the governing body; and
(2) be conditioned that the water and sewer service facilities will be constructed or installed:
(A) in compliance with the model rules adopted under Section 16.343, Water Code; and
(B) within the time stated on the plat or on the document attached to the plat for the subdivision or within any extension of that time.
Status: in_force · Read it on the official government site
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