Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 10 - TEXAS WATER DEVELOPMENT BOARD › Chapter 364 - MODEL SUBDIVISION RULES › Subchapter B - MODEL RULES › Division 3 - PLAT APPROVAL › Section 364.54 - Financial Guarantees for Improvements

Current through Reg. 49, No. 28; July 12, 2024
(a) Applicability. If an adequate public or
					 non-public water system or sewerage facility is not available from a retail
					 public utility, or are not constructed by the subdivider, to serve lots
					 intended for residential purposes of five acres or less at the time final plat
					 approval is sought, then the commissioners court shall require the owner of the
					 subdivided tract to execute an agreement with the county in substantially the
					 form attached in Appendix 2A secured by a bond, irrevocable letter of credit,
					 or other alternative financial guarantee such as a cash deposit which meet the
					 requirements set forth below.
Attached
						Graphic
(b)
					 Bonds. A bond that is submitted in compliance with subsection (a) of this
					 section shall meet the following requirements.
(1) The bond or financial guarantee shall be
					 payable to the county judge of the county, in his official capacity, or the
					 judge's successor in office.
(2)
					 The bond or financial guarantee shall be in an amount determined by the
					 commissioners court to be adequate to ensure proper construction or
					 installation of the public or non-public water facilities, and wastewater
					 facilities to service the subdivision, including reasonable contingencies, but
					 in no event shall the amount of the bond be less than the total amount needed
					 to serve the subdivision as established by the engineer who certifies the
					 plat.
(3) The bond shall be
					 executed with sureties as may be approved by the commissioners court. The
					 county shall establish criteria for acceptability of the surety companies
					 issuing bonds that include but are not limited to:
(A) registration with the Secretary of State
					 and be authorized to do business in Texas;
(B) authorization to issue bonds in the
					 amount required by the commissioners court; and
(C) rating of at least B from Best's Key
					 Rating Guide; or if the surety company does not have any such rating due to the
					 length of time it has been a surety company, the surety company must
					 demonstrate eligibility to participate in the surety bond guarantee program of
					 the Small Business Administration and must be an approved surety company listed
					 in the current United States Department of Treasury Circular 570. Such bonds
					 shall meet the criteria contained in the rules and regulations promulgated by
					 the United States Department of Treasury.
(4) The bond shall be conditioned upon
					 construction or installation of water and wastewater facilities meeting the
					 criteria established by Division 2 of this subchapter and upon construction of
					 facilities within the time stated on the plat, or on the document attached to
					 the plat for the subdivision, or within any extension of time granted by the
					 commissioners court.