Sec. 113.058. BOND. (a) A corporate trustee is not required to provide a bond to secure performance of its duties as trustee.
(b) Unless the instrument creating the trust provides otherwise, a noncorporate trustee must give bond:
(1) payable to the trust estate of the trust, the registry of the court, or each person interested in the trust, as their interests may appear; and
(2) conditioned on the faithful performance of the trustee's duties.
(c) The bond must be in an amount and with the sureties required by order of a court in a proceeding brought for this determination.
(d) Any interested person may bring an action to increase or decrease the amount of a bond, require a bond, or substitute or add sureties. Notwithstanding Subsection (b), for cause shown, a court may require a bond even if the instrument creating the trust provides otherwise.
(e) The trustee shall deposit the bond with the clerk of the court that issued the order requiring the bond. A suit on the bond may be maintained on a certified copy. Appropriate proof of a recovery on a bond reduces the liability of the sureties pro tanto.
(f) Failure to comply with this section does not make void or voidable or otherwise affect an act or transaction of a trustee with any third person.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 14, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 6, eff. September 1, 2007.
Last modified: September 28, 2016