Fidelity Ins. Co. v. 

Sheriff of Dallas County 

5T5wl1 in 476 S.W. 2d 115 (Tex. 

Civ.App., 1972, error ref. 

.T~inr~a~rv 26. 1973 n.r.e.) 

HF, A~~XMRNEY GENERAL 

Affirmed bv International 

- ---- -_, __, _ , _ 

Hon. Carol S. Vance 

District Attorney 

Harris County Courthouse 

Houston, Texas 77002 

Dear Mr. Vance: 

Opinion No. M- 1060 

Re: If a limit exists as to the 

total amount of bail bonds that 

a corporate surety may make, 

then how may the limit be 

determined? 

You have requested an opinion from this office on the following 

question: 

“Is there any limit as to the total amount of bail 

bonds that a corporate surety may make? If so, 

how is such limit to be determined? 

The authority for a corporation to act as surety on a bail bond is 

found under the provisions of Article 17.06 of the Code of Criminal 

Procedure of Texas which reads as follows: 

“Wherever in this Chapter, any person is required or authorized to give or execute any bail 

bond, such bail bond may be given or executed 

by such principal and any corporation authorized 

by law to act as surety, subject to all the provisions of this Chapter regulating and governing 

the giving of bail bonds by personal surety insofar 

as the same is applicable. ” 

Article 17.07 of the Code of Criminal Procedure reads as follows: 

“Any corporation authorized by the law of this 

State to act as a surety, shall before executing 

any bail bond as authorized in the preceding 

Article, first file in the office of the county clerk 

-5173- 
Honorable Carol S. Vance, page 2 (M-1060) 

of the county where such bail bond is given, a 

power of attorney designating and authorizing 

. the named agent, agents or attorney of such 

corporation to execute such bail bonds and 

thereafter the execution of such bail bonds by 

such agent, agents or attorney, shall be a 

valid and binding obligation of such corporation. ” 

Article 17.11, Section 1, of the Code of Criminal Procedure, reads 

as follows : 

“Every court, judge, magistrate or other 

officer taking a bail bond shall require evidence 

of the sufficiency of the security offered; but 

in every case, one surety shall be sufficient, 

if it be made to appear that such surety is worth 

at least double the amount of the sum for which 

he is bound, exclusive of all property exempted 

by law from execution, and of debts or other 

encumbrances; and that he is a resident of this 

state, and has property therein liable to execution worth the sum for which he is bound, I1 

Article 17.045 of the Code of Criminal Procedure reads as follows: 

“A bail bond certificate with respect to which a 

fidelity and surety company has become surety 

as provided in the Automobile Club Services Act, 

or for any truck and bus association incorporated 

in this state, when posted by the person whose 

signature appears thereon, shall be accepted as 

bail bond in an amount not to exceed $200 to 

guarantee the appearance of such person in any 

court in this state when the person is arrested for 

violation of any motor vehicl,e law of this state or 

ordinance of any municipality in this state, except 

for the offense of driving while intoxicated or for 

any felony, and the alleged violation was committed 

prior to the date of expiration shown on such bail 

bond certificate. ” 

-51?4- 
Honorable Carol S. Vance, page 3 (M-1060) 

In the cases of ExParte Cook, 136 S. W. 67 (Tex. Crim. 1911), and 

ExParte Osborne, 77 S. W. 2d 537 (Tex. Crim. 1934) the Court held that 

bail bonds executed by a surety company which had been authorized to do 

business under the statutes must be accepted. 

Article 2.01 of the Texas Insurance Code authorizes the formation 

of a casualty insurance company, including fidelity, guaranty, surety and 

trust companies. Article 2.02, subdivision 4 of this Code requires these 

companies to incorporate with a capital of not less than $150,000 and 

$75,000 surplus. 

Article 5.13 of the Insurance Code places the regulation of fidelity, 

surety and guaranty bonds under the Board of Insurance Commissioners, 

and, within the board, gives primary supervision and regulation thereof 

to the Casualty Insurance Commissioner. 

Article 7.19-1 of the Insurance Code authorizes execution of a 

surety undertaking by one surety company. 

Article 8.07 of the Insurance Code requires the officers of a 

casualty company to file an annual statement showing names of all 

officers, capital stock, the amount of capital stock paid in, assets, liabilities, income during the year, expenditures during the year, and a 

full disclosure is to be made by said company to the State Board of 

Insurance. 

Article 8.11 of the Insurance Code, authorizes the Insurance 

Commission to revoke the certificate of authority and refer the facts to 

the Attorney General, who shall proceed to ask the Court to appoint a 

receiver, for failure of the corporation to comply with the law, and then 

expressly states: 

11 

. . . In no other way can the Board or any other 

person restrain or interfere with the prosecution 

of business of any company doing business under 

the provisions of this chapter, except in actions 

by judgment creditor or in proceedings supplementary to execution. ” 

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Honorable Carol S. Vance, page 4 (M-1060,) 

Article 8.20 of the Insurance Code reads as follows: 

“The Board upon due proof by a company 

organized under the provisions of this law, 

of its possessing the qualifications required, 

shall issue a certificate setting forth that it 

has qualified and is authorized for the ensuing 

year to do business under the law, which 

certificate or a copy thereof shall be evidence 

of such qualifications and of such company’s 

authority to transact business authorized by 

this chapter, and of its solvency and credits. ” 

Article 21.36 of the Insurance Code provides as follows: 

“Should any insurance company, except those 

designated in Article 3.61 of this code fail or 

neglect to pay off and discharge any execution, 

issued upon a valid final judgment against said 

company, within thirty (30) days after the notice 

of the issuance thereof, then in that event the 

certificate of authority of said company to transact 

business of insurance shall be revoked, cancelled 

and annulled, and said company shall be prohibited 

from transacting business of insurance in this 

State until said execution be satisfied. ” 

We do not find in the Insurance Code or the Code of Criminal 

Procedure any limit as to the total number or amount of bail bonds that 

a corporate surety may make. However, we do find in Article 17.09 

of the Code of Criminal Procedure that if the Judge finds sureties are 

not acceptable on a bail bond,then he can order the accused to be rearrested and a new, bond to be made. 

Section 2 of Article 17.11 of the Code of Criminal Procedure 

provides that if any person who has signed as surety on a bail bond is in 

default thereon, then he shall be disqualified to sign a surety so long as 

he is default on said bond. It further provides that the clerk shall notify 

in writing the sheriff, chief of police, or other peace officers of such 

default. Also Article 21.36 of the Insurance Code, supra, provides for 

-5176- 
-. . 

Honorable Carol S. Vance, page 5 (M-1060) 

the revocation of a certificate of authority to transact insurance business 

in the event any insurance company fails or neglects to pay off and discharge any final judgment against said insurance company. 

In view of our answer to the first part of your question, no answer 

is necessary to the second portion thereof. 

SUMMARY 

The statutes of the State of Texas do not 

provide for any limit as to the total number or 

amount of bail l%x that a corporate surety 

mav make. 

Prepared by John H. Banks 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

Sam Jones 

Rex White 

Lonny Zwiener 

Bob Lattimore 

SAM MCDANIEL 

Staff Legal’ Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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