Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 80 - MANUFACTURED HOUSING › Subchapter D - LICENSING › Section 80.40 - Security Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) For purposes of
				  meeting the security requirements of §1201.105 of the Standards Act,
				  "other security" means a deposit in a state or federally chartered bank or
				  savings and loan association. If other security is posted, the other security
				  must be maintained in or by a banking institution located in this state subject
				  to a control agreement in the promulgated form set forth on the Department's
				  website. Such deposits are hereinafter referred to as security. If such
				  security is reduced by a claim, the license holder shall, within twenty (20)
				  calendar days, make up the deficit as required by §1201.109(c) of the
				  Standards Act. No advance notice is required by the Department to the license
				  holder, but the Department shall verify the deposit.
(b) Any other security provided for
				  compliance with §1201.105 of the Standards Act, shall remain in place and
				  subject to a control agreement in favor of the Department for two (2) years
				  after the person ceases doing business as a manufacturer, retailer, broker, or
				  installer, or until such later time as the director may determine that no
				  claims exist against the other security. The Director may consent to the
				  substitution of a bond or a different qualifying deposit for other security
				  provided that in the event a bond is filed to replace the assigned security,
				  the initial effective date of the bond is the same or prior to the date of the
				  assignment of security.
(c) If a
				  required bond is canceled during the license period, the license shall be
				  automatically suspended on the date bond coverage ceases.
(d) To be exempt from the additional security
				  as required by §1201.106(b) of the Standards Act, a manufacturer who does
				  not have a manufacturing plant in this state must have a bona fide service
				  facility.
(1) The manufacturer shall provide
				  the Department with the name, address and phone number of the service facility,
				  conspicuous notice of which shall be provided to each Texas retailer who
				  purchases homes from the manufacturer.
(2) The service facility shall be capable of
				  compliance with the provisions of Sub-part I of the Manufactured Housing
				  Improvement Act (latest edition) and capable of providing warranty service
				  within the reasonable time requirements set by the Department in §
											RSA
				  80.73 of this chapter (relating to Procedures
				  for Handling Consumer Complaints), and shall be subject to periodic review and
				  inspection by Department personnel.
(3) If the Department determines that the
				  requirements of paragraph (2) of this subsection have not been met, notice must
				  be sent of that determination and of the requirement of an additional bond
				  amount.
(4) Unless additional
				  security is provided as required by the Standards Act, all out of state
				  manufacturers must disclose their in-state service facility on each renewal of
				  their license.