TEXAS SCHOOL DEPOSITORY SURETY BOND FORM BOND NO.

Figure: 19 TAC 109.52(d)
TEXAS SCHOOL DEPOSITORY SURETY BOND FORM
BOND NO. __________________________________
I.
GUARANTEE The [Surety Company], in consideration of an agreed premium paid by the [Bank], subject to all of the terms
and conditions of this bond, hereby agrees to guarantee the deposits in certain Designated Depository Accounts
in the [Bank], in excess of the $100,000.00 deposit insurance provided by the Federal Deposit Insurance
Corporation.
The [Surety Company] shall promptly reimburse the Designated Depository Account Owner(s) of a Designated
Depository Account(s) up to a Limit of Liability as specified in Section III of this bond in the event of
insolvency and failure of the [Bank].
Insolvency and failure shall mean that the [Bank] shall be taken over by a regulatory authority either state or
federal and ordered liquidated or the deposits sold by the Federal Deposit Insurance Corporation in such a
manner that the Federal Deposit Insurance Corporation refuses to sell or reimburse the deposits in excess of the
$100,000.00 deposit insurance.
II.
DESIGNATION OF DEPOSITORY OWNER(S) AND ACCOUNT(S)
DESIGNATED DEPOSITORY ACCOUNT OWNER(S):
[______________________ Independent School District].
DESIGNATED OWNER ADDRESS:
_______________________________________________
DESIGNATED DEPOSITORY ACCOUNT NUMBER(S):
[List Various Depository Accounts in the Name of _________________ISD]
III.
LIMIT OF LIABILITY The total limit of liability of the [Surety Company] under this bond shall be [WRITTEN DOLLAR AMOUNT
$XXXXXXXX] which shall be the maximum guaranteed amount. Regardless of the number of Designated
Depository Account Owners and number of Designated Depository Account[s], the maximum amount of
payment under this bond shall not exceed [$XXXXXXXX].
IV.
PAYMENT OF LOSS In the event that the [Bank] should be declared insolvent and fail, the Designated Depository Account
Owner(s) of the Designated Depository Account(s) for which this bond has been issued shall be paid the
amount that the receiver’s certificate indicates to be uninsured by the Federal Deposit Insurance Corporation
up to the maximum guaranteed amount specified in Section III of this bond. Indirect or consequential damages
or loss of any nature shall not be covered by this bond. Payment will be made promptly upon receipt by the
[Surety Company] of the assignment of the receiver’s certificate from the Designated Depository Account
Owner(s) or upon demand.
V. TERMINATION OR CANCELLATION This bond shall become effective at 12:01 a.m. on [date] and shall remain in effect until terminated or canceled
for the following reasons: (1) upon 15 days notice of cancellation for non-payment of the annual premium; (2)
immediately upon notice from the Designated Depository Account Owner(s), or any one of them, of
his/her/their desire to cancel the bond; (3) 90 days after written notice from the [Surety Company] of its desire
to cancel the bond for reasons allowed by the laws of the State of Texas to the [Bank] and to the Designated
Owner Address of the Designated Depository Account Owner(s) as shown on this bond. Any notice hereunder
shall be in writing and shall be deemed effective upon receipt by facsimile transmission, hand delivery or
certified mail, return receipt requested, by the party to whom the notice is addressed. This bond shall be
automatically terminated in the event that all funds in the Designated Depository Account(s) listed in Section II
of this bond are completely withdrawn and/or such account(s) are closed. In the event of cancellation or
termination of this bond, the [Surety Company] shall have no obligation to make any payment to any
Designated Depository Account Owner(s).
VI. RESPONSIBILITY OF BANK It is understood and agreed that this bond is for and on behalf of the [Bank] to enable the bank to protect its Designated Depository Account Owner(s). All designations of accounts are the complete responsibility of the
[Bank]. The [Surety Company’s] liability to the Designated Depository Account Owner(s) begins upon the
declaration of insolvency and failure of the [Bank], and not prior to that event. In addition, pursuant to the
Texas Education Code, Section 45.208, the [Surety Company] and the [Bank] agree that the [Bank] shall:
1)
faithfully perform all duties and obligations devolving by law on the [Bank];
2)
make payment on presentations of all checks or drafts on order of the board of trustees of the
school district, in accordance with its orders entered by the board of trustees according to law;
3)
make payment on demand of any demand deposit of the school district in the [Bank];
4)
make payment, after the expiration of the period of notice required, of any time deposit of the
school district in the [Bank];
5)
faithfully keep the school district funds and provide accounting for the funds according to
law; and
6)
faithfully pay over to any successor depository all balances remaining in the accounts of the
[Bank].
VII.
CONSOLIDATION OR MERGER
This bond shall terminate and be null and void at 12:01 a.m. on the date of consolidation or merger of the
[Bank] into any other bank or financial institution. The [Bank] shall notify the [Surety Company] and the
Designated Depository Account Owner(s) 90 days prior to any consolidation or merger of the bank’s intention
to merge into any other bank or financial institution. Any deposits in the Designated Depository Account(s) in
excess of the $100,000.00 Federal Deposit Insurance Corporation deposit limit shall be guaranteed by a new
bond or other means as may be authorized by Texas law at the time of such consolidation or merger.
VIII.
SOLE USE AND BENEFIT
This bond is for the sole use and benefit of the Designated Depository Account Owner(s). This bond is nonnegotiable and shall not be assigned under any circumstances by the Designated Depository Account Owner(s)
or any other person, entity, or holder. The [Bank] shall not be deemed an agent or representative of the [Surety
Company] for any purpose in connection with this bond.
SIGNED, SEALED AND DATED this _______ day of _______________, _________.
[Bank]
(Address)
(Phone)
[Surety Company]
(Address)
(Phone)
By______________________________
By__________________________________
Title_____________________________
Title________________________________
Acknowledgment
STATE OF TEXAS
)
COUNTY OF _____________________)
BEFORE ME, the undersigned authority in and for said county and state, on this day personally appeared
______________________________________ known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that (s)he executed the same as
_________________________________on behalf of said ________________________________ in the
capacity therein stated.
GIVEN UNDER MY HAND and seal of office this the ______________ day of
______________________, ______.
Signature of Notary
Notary Public in and for
(SEAL)
County, Texas
My Commission Expires
SURRENDER OF BOND FORM By signature below of any Designated Account Owner, all Designated Account Owners give notice to the
[Surety Company] of their desire to cancel Bond No. _______________ in its entirety.
By________________________________________
Date______________________________________
OR
SURRENDER OF BOND FOR REISSUANCE FORM
By signature below of any Designated Account Owner, all Designated Account Owners give notice to the
[Surety Company] of their desire to cancel Bond No. __________________ in its entirety, on the condition
that another similar bond is issued with the following listed Designated Depository Account Owners,
Designated Owner Address, Designated Depository Account Numbers and Limit of Liability:
REQUESTED DESIGNATED DEPOSITORY ACCOUNT OWNER(S):
REQUESTED DESIGNATED OWNER ADDRESS:
REQUESTED DESIGNATED DEPOSITORY ACCOUNT NUMBER(S):
REQUESTED LIMIT OF LIABILITY:
By________________________________________
Date______________________________________