September 28, 1987
Honorable Benlamin Euresti. Jr. Ouinion No. JM-799
Cameron Count; Attorney
Courthouse - 974 E. Harrison Street Re: Whether the Cameron County
Brownsville, Texas 78520 Bail Bond Board is authorized
to set a limit on the value
amount of bonds which a corp-
orate surety may provide
Dear Mr. Euresti:
You ask:
Does the Cameron County Bail Bond Board have
the authority to set a limit on the value amount
of bonds that the corporate surety can make?
You provide the following factual background:
The Cameron County Bail Bond Board pursuant to
Vernon's Civil Statutes Art. 2372p-3 oversees the
licensing and regulating of bail bondsmen in said
county. Under Section 7(a) a corporation
certified to do business by the State Board of
Insurance has applied for a license. Said corpor-
ation has met all necessary legal requirements to
qualify for a license.
Section 6(g) article 2372p-3, V.T.C.S., provides:
No bondsman may execute, in any county, bail
bonds that in the aggregate exceed 10 times the
value of the property held as security on deposit
or in trust under Subsection (f).of this section.
A county officer or employee designated by the
board shall maintain a current total of the
bondsman's potential liability on bonds in force,
and no further bonds may be written by or accepted
from the bondsman when the limit is reached. When
a bondsman's total liability on judgments nisi
reaches two times the same amount as he has on
deposit as security, no further bonds may be
p. 37,76
,
Honorable Benjamin Euresti, Jr. - Page 2 (JM-799)
written until the bondsman posts additional
security as required in this subsection. A
bondsman whose license is effective may, at any
time, by posting additional security, increase the
bondsman's limit.
Section 7, article 2372p-3 states:
(a) Wherever in this Act any person is required
or authorized to give or execute any bail bond,
such bail bond may be given or executed 'by such
principal and any corporation authorized by law to
act .as surety. When any such corporation author-
ized by law to act as a surety undertakes to be a
surety on a bail bond, such corporation, before
being acceptable as a surety on a bail bond, shall
be required to meet the applicable requirements
prescribed by Section 6 of this Act before being
acceptable as a personal surety on a bail bond;
Subsection (g) of Section 6 does not apply to a
corporate surety.
(b) The certificate of authority to do business
in this state issued to a corporation by the State
Board of Insurance pursuant to Article 8.20,
Insurance Code, as amended, shall be conclusive
evidence as to the sufficiency of the security,
the corporation's solvency, or its credits.
(Emphasis added.)
Section 7(a), article 2372p-3, expressly provides that subsection
(g) of section 6 does not apply to a corporate surety. Section 7(b)
further provides that the certificate of authority issued to a
corporation by,the State Board of Insurance is conclusive evidence as
to the sufficiency of the security, the corporation's solvency, or its
credits.
Accordingly, the Cameron County Bail Bond Board is not authorized
to set a limit on the value amount of bonds which a corporate surety
may provide where the corporation has been issued a certificate of
authority to do business in this state by the State Board of Insurance
pursuant to article 8.20, Insurance Code and has met the requirements
of section 6, article 2372p-3, V.T.C.S.
SUMMARY
The Cameron County Bail Bond Board is not
authorized to set a limit on the value amount of
bonds which a corporate surety may provide where
p. 3777
Honorable Benjamin Euresti, Jr. - Page 3 (JM-799)
the corporation has been issued a certificate of
authority to do business in this state by the
State Board of Insurance pursuant to article 8.20,
Insurance Code and has met the requirements of
section 6, article
JIM MATTOX
Attorney General of Texas
MARY KELLER
Executive Assistant Attorney General
JUDGE ZOLLIE STEAKLEY
Special Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Tom G. Davis
Assistant Attorney General
p. 3778