Texas § PR.53.161 - BOND REQUIREMENTS AFTER ORDER TO REMOVE

§ PR.53.161. BOND REQUIREMENTS AFTER ORDER TO REMOVE

BOND REQUIREMENTS AFTER ORDER TO REMOVE. (a) In the order removing a lien, the court shall set the amount of security that the claimant may provide in order to stay the removal of the claim or lien. The sum must be an amount that the court determines is a reasonable estimate of the costs and attorney's fees the movant is likely to incur in the proceeding to determine the validity or enforceability of the lien. The sum may not exceed the amount of the lien claim. (b) The court shall stay the order removing the lien if the claimant files a bond or a deposit in lieu of a bond in the amount set in the order with the clerk of the court not later than the 30th day after the date the order is entered by the court unless, for good cause, the court orders a later date for filing the bond or the deposit in lieu of a bond. If the court fails to set the amount of the security required, the amount required is the amount of the lien claim. (c) The bond must be: (1) executed by a corporate surety authorized to do business in this state and licensed by this state to execute bonds as surety; and (2) conditioned on the claimant's payment of any final judgment rendered against the claimant in the proceeding for attorney's fees and costs to the movant under Section 53.156 . (d) In lieu of filing a bond, the claimant may deposit in the amount set by the court for the surety bond: (1) cash; (2) a negotiable obligation of the federal government or a federal agency; or (3) a negotiable obligation of a financial institution chartered by the federal or state government that is insured by the federal government or a federal agency. (e) A deposit made under Subsection (d) must be conditioned in the same manner as a surety bond. Any interest accrued on the deposit amount is a part of the deposit. (f) If the claimant fails to file the bond or the deposit in lieu of the bond in compliance with this section, the owner may file: (1) a certified copy of the order; and (2) a certificate from the clerk of the court stating that: (A) no bond or deposit in lieu of the bond was filed within 30 days after the date the order was entered by the court; and (B) no order staying the order to remove the lien was entered by the court. (g) The claim or lien is removed and extinguished as to a creditor or subsequent purchaser for valuable consideration who obtains an interest in the property after the certified copy of the order and certificate of the clerk of the court are filed with the county clerk. The removal of the lien does not constitute a release of the liability of the owner, if any, to the claimant. Added by Acts 1997, 75th Leg., ch. 526, Sec. 17, eff. Sept. 1, 1997.