Texas Natural Resources Code - Section 111.053. Bond Of Public Utility
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Texas Laws > Natural Resources Code > Texas Natural Resources Code - Section 111.053. Bond Of Public Utility
§ 111.053. BOND OF PUBLIC UTILITY. (a) Before engaging
in business as a public utility, a person, association, or
corporation that is to engage in business as a public utility shall
file a bond in an amount not to exceed $25,000 that is properly
executed and made payable to the State of Texas with the amount of
the bond and the sureties on the bond subject to the approval of the
commission.
(b) In lieu of a bond as required by Subsection (a), a
person, association, or corporation may deposit with the
commission:
(1) bonds of the United States;
(2) certificates of indebtedness issued by the United
States secretary of the treasury;
(3) bonds of this state or a county, municipality, or
school district of this state; or
(4) shares or share accounts of savings and loan
associations organized under the laws of this state or federal
savings and loan associations domiciled in this state, if the
shares or share accounts are insured by the Federal Deposit
Insurance Corporation.
(c) The bond or securities in lieu of the bond as provided by
Subsection (b) shall be approved by the commission before the bond
is filed or the securities deposited.
(d) After proper notice and hearing as provided by law, the
amount of the bond may be changed from time to time by order of the
commission, according to the volume of business done or to be done
by the public utility.
(e) The bond shall be conditioned that the public utility
will observe the applicable provisions of this subchapter and
chapter and the rules of the commission insofar as its business is
regulated and controlled by the commission and that the public
utility will exercise ordinary care in the storage, preservation,
handling, and delivery of petroleum products entrusted to it and
shall guarantee the classification, measurements, and grades made
by it under its authority and in conformity herewith.
(f) The bond shall be for the benefit of the patrons of the
public utility and their assignees as though they were named
obligees in the bond and they shall severally have the right of suit
on the bond.
Acts 1977, 65th Leg., p. 2582, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.107, eff.
Sept. 1, 2001.
Section: 111.021 111.022 111.023 111.024 111.025 111.051 111.052 111.053 111.054 111.081 111.082 111.083 111.084 111.085 111.086
Last modified: August 11, 2007
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