Skip to content

Texas bonds

Texas — MUD Public Official Bond

Prepare your Texas MUD director's $10,000 Public Official Bond for faithful performance of your duties under Water Code Section 49.055. Have the district's details ready, then select Purchase Now to apply through Propeller.

Continue to our secure checkout partner, Propeller (opens in a new tab).

Recorded state
Texas
Category
Public officials & government

What this bond does

The bond secures faithful performance of the director's official duties. Section 49.055 requires the instrument to be payable to the district.

Who needs it
Directors elected or appointed to a Texas Municipal Utility District or another district subject to Section 49.055. That section expressly excludes special water authorities.
Who it protects
The district is the obligee protected by the director's faithful-performance bond. This is separate from personal liability insurance and does not promise payment for every dispute involving a director.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

The director's bond requirement

Section 49.055 of the Texas Water Code requires each director subject to that section to execute a $10,000 bond before beginning the duties of office. It must be payable to the district and conditioned on faithful performance. The section does not apply to special water authorities.

The district's board must approve the director's bond. Purchase Now opens Propeller in a new tab; use the district's full name, the director's legal name, requested form and effective date to begin the application.

Filing and recordkeeping

After issuance and execution, file the bond with the district for retention in its records. This is a separate step from starting the application.

Section 49.055 also addresses the sworn statement and oath. The bond and oath are filed with the district; a duplicate original of the oath goes to the Secretary of State. Keep those instructions separate so the bond is not sent to the wrong recipient.

Director and fund-handling roles

The board manages the district's affairs. This bond secures the director's faithful performance in that role.

Section 49.057 separately addresses security for officers, employees and consultants who routinely handle district funds, including an authorized insurance or interlocal-coverage alternative in specified circumstances. Do not treat the director's $10,000 bond as blanket protection for all those roles.

Sources

Have these ready

  1. Verify your specific appointment or election status with the district board secretary.
  2. Have the district's full legal name and requested bond form ready for the $10,000 director obligation.
  3. Identify the requested effective date and your appointment or election details.
  4. After issuance: complete execution, obtain board approval and file the bond with the district.

Questions about this bond

What is the required amount for a Texas MUD Director bond?

The Texas Water Code Section 49.055 mandates that each director must execute a bond in the amount of $10,000.

What should I prepare before applying?

Have your legal name, district's full name, appointment or election details, requested form and effective date ready. Apply through Purchase Now before completing the issued document's approval and filing.

Where should the signed bond be filed?

The bond must be filed with the district and retained in its records.

Does this bond cover my personal liability?

This is a surety bond conditioned on the faithful performance of your official duties as a director; it protects the district from losses due to a director's failure to perform those duties.

Related bonds

Keep exploring

How can we help you get started?

Choose the quote that fits, and we’ll take it from there.

Have a question? Contact us