Texas § OC.1201.106 - SECURITY

§ OC.1201.106. SECURITY

SECURITY: AMOUNT. (a) An applicant for a license or a license holder shall file a bond or other security under Section 1201.105 for the issuance or renewal of a license in the following amount: (1) $100,000 for a manufacturer; (2) $50,000 for a retailer; (3) $50,000 for a broker; or (4) $25,000 for an installer. (a-1) Notwithstanding the provisions of Subsection (a), the director may require additional security for the licensing, renewal, or relicensing of a person, or the sponsoring of a salesperson, who, either directly, as a related person, or through a related person, has been the subject of a license revocation, has caused the manufactured homeowner consumer claims program to incur unreimbursed costs or liabilities in excess of available surety bond coverage, or has failed to pay an administrative penalty that has been assessed by final order. (b) To ensure the availability of prompt and satisfactory warranty service, a manufacturer that does not have a licensed manufacturing plant or other facility in this state from which warranty service and repairs can be provided shall file a bond or other security in the additional amount of $100,000. (c) The bond or other security is open to successive claims up to the face value of the bond or other security. The surety is not liable for successive claims in excess of the face value of the bond, regardless of the number of years the bond remains in force. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1284 (H.B. 2438 ), Sec. 3, eff. June 18, 2005. Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460 ), Sec. 11, eff. January 1, 2008. Acts 2013, 83rd Leg., R.S., Ch. 1079 (H.B. 3361 ), Sec. 3.10, eff. September 1, 2013. Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019 ), Sec. 9, eff. September 1, 2017.