{"data":{"id":"us-tx/tex.-finance-code-394.206","jurisdiction":"us-tx","citation":"Tex. Finance Code § 394.206","heading":"BOND; INSURANCE.","body":"(a) A provider shall, at the time the provider files an initial or renewal registration application with the commissioner, file:\n(1) a surety bond; or\n(2) evidence that the provider maintains an insurance policy in a form approved by the commissioner.\n(b) The bond or insurance must:\n(1) run concurrently with the period of registration;\n(2) be available to pay damages and penalties to consumers directly harmed by a violation of this subchapter;\n(3) be in favor of this state for the use of this state and the use of a person who has a cause of action under this subchapter against the provider;\n(4) if a bond:\n(A) be in an amount equal to the average daily balance of the provider's trust account serving Texas consumers over the six-month period preceding the issuance of the bond, or in the case of an initial application, in an amount determined by the commissioner, but not less than $25,000 or more than $100,000, if the provider receives and holds money paid by or on behalf of a consumer for disbursement to the consumer's creditors; or\n(B) be in the amount of $50,000, if the provider does not receive and hold money paid by or on behalf of a consumer for disbursement to the consumer's creditors;\n(5) if an insurance policy:\n(A) provide coverage for professional liability, employee dishonesty, depositor's forgery, and computer fraud in an amount not less than $100,000;\n(B) be issued by a company rated at least \"A-\" or its equivalent by a nationally recognized rating organization; and\n(C) provide for 30 days advance written notice of termination of the policy to be provided to the commissioner;\n(6) be issued by a bonding, surety, or insurance company that is authorized to do business in the state; and\n(7) be conditioned on the provider and its agents complying with all state and federal laws, including regulations, governing the business of debt management services.\n(c) In lieu of a bond or insurance, the finance commission by rule may establish alternative financial requirements to provide substantially equivalent protection to pay damages and penalties to consumers directly harmed by a violation under this subchapter.\n(d) The commissioner may adjust the amount of the provider's bond or insurance only when the provider applies for renewal of registration and requests a review of the bond or insurance amount.\nAdded by Acts 2005, 79th Leg., Ch. 336 (S.B. 1112), Sec. 1, eff. September 1, 2005.\nAmended by:\nActs 2011, 82nd Leg., R.S., Ch. 368 (S.B. 141), Sec. 3, eff. September 1, 2011.","path":["FINANCE CODE","TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES","CHAPTER 394. DEBTOR ASSISTANCE","SUBCHAPTER C. CONSUMER DEBT MANAGEMENT SERVICES"],"source_url":"https://statutes.capitol.texas.gov/Docs/FI/htm/FI.394.htm#394.206","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:13Z","sha256":"f70eeb699858e2f83e933639e573d8795535a7982e4afa78b4e56c7598901540","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-finance-code-394.205","next":"us-tx/tex.-finance-code-394.207"},"notice":"GroundRules: Original legal text. Not legal advice."}