Untitled Texas Attorney General Opinion ( 1972 )

HF, A``XMRNEY GENERAL
Affirmed bv International
Fidelity Ins. Co. v.
Sheriff of Dallas County
5T5wl1 in 476 S.W. 2d 115 (Tex.
Civ.App., 1972, error ref.
.T~inr~a~rv 26. 1973 n.r.e.)
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Hon. Carol S. Vance Opinion No. M- 1060
District Attorney
Harris County Courthouse Re: If a limit exists as to the
Houston, Texas 77002 total amount of bail bonds that
a corporate surety may make,
then how may the limit be
Dear Mr. Vance: determined?
You have requested an opinion from this office on the following
question:
“Is there any limit as to the total amount of bail
bonds that a corporate surety may make? If so,
how is such limit to be determined?
The authority for a corporation to act as surety on a bail bond is
found under the provisions of Article 17.06 of the Code of Criminal
Procedure of Texas which reads as follows:
“Wherever in this Chapter, any person is re-
quired 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, subject to all the pro-
visions of this Chapter regulating and governing
the giving of bail bonds by personal surety insofar
as the same is applicable. ”
Article 17.07 of the Code of Criminal Procedure reads as follows:
“Any corporation authorized by the law of this
State to act as a surety, shall before executing
any bail bond as authorized in the preceding
Article, first file in the office of the county clerk
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Honorable Carol S. Vance, page 2 (M-1060)
of the county where such bail bond is given, a
power of attorney designating and authorizing
. the named agent, agents or attorney of such
corporation to execute such bail bonds and
thereafter the execution of such bail bonds by
such agent, agents or attorney, shall be a
valid and binding obligation of such corporation. ”
Article 17.11, Section 1, of the Code of Criminal Procedure, reads
as follows :
“Every court, judge, magistrate or other
officer taking a bail bond shall require evidence
of the sufficiency of the security offered; but
in every case, one surety shall be sufficient,
if it be made to appear that such surety is worth
at least double the amount of the sum for which
he is bound, exclusive of all property exempted
by law from execution, and of debts or other
encumbrances; and that he is a resident of this
state, and has property therein liable to execu-
tion worth the sum for which he is bound, I1
Article 17.045 of the Code of Criminal Procedure reads as follows:
“A bail bond certificate with respect to which a
fidelity and surety company has become surety
as provided in the Automobile Club Services Act,
or for any truck and bus association incorporated
in this state, when posted by the person whose
signature appears thereon, shall be accepted as
bail bond in an amount not to exceed $200 to
guarantee the appearance of such person in any
court in this state when the person is arrested for
violation of any motor vehicl,e law of this state or
ordinance of any municipality in this state, except
for the offense of driving while intoxicated or for
any felony, and the alleged violation was committed
prior to the date of expiration shown on such bail
bond certificate. ”
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Honorable Carol S. Vance, page 3 (M-1060)
In the cases of ExParte Cook, 136 S.W. 67 (Tex. Crim. 1911), and
ExParte Osborne, 77 S.W.2d 537 (Tex. Crim. 1934) the Court held that
bail bonds executed by a surety company which had been authorized to do
business under the statutes must be accepted.
Article 2.01 of the Texas Insurance Code authorizes the formation
of a casualty insurance company, including fidelity, guaranty, surety and
trust companies. Article 2.02, subdivision 4 of this Code requires these
companies to incorporate with a capital of not less than $150,000 and
$75,000 surplus.
Article 5.13 of the Insurance Code places the regulation of fidelity,
surety and guaranty bonds under the Board of Insurance Commissioners,
and, within the board, gives primary supervision and regulation thereof
to the Casualty Insurance Commissioner.
Article 7.19-1 of the Insurance Code authorizes execution of a
surety undertaking by one surety company.
Article 8.07 of the Insurance Code requires the officers of a
casualty company to file an annual statement showing names of all
officers, capital stock, the amount of capital stock paid in, assets, lia-
bilities, income during the year, expenditures during the year, and a
full disclosure is to be made by said company to the State Board of
Insurance.
Article 8.11 of the Insurance Code, authorizes the Insurance
Commission to revoke the certificate of authority and refer the facts to
the Attorney General, who shall proceed to ask the Court to appoint a
receiver, for failure of the corporation to comply with the law, and then
expressly states:
11
. . . In no other way can the Board or any other
person restrain or interfere with the prosecution
of business of any company doing business under
the provisions of this chapter, except in actions
by judgment creditor or in proceedings supple-
mentary to execution. ”
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Honorable Carol S. Vance, page 4 (M-1060,)
Article 8.20 of the Insurance Code reads as follows:
“The Board upon due proof by a company
organized under the provisions of this law,
of its possessing the qualifications required,
shall issue a certificate setting forth that it
has qualified and is authorized for the ensuing
year to do business under the law, which
certificate or a copy thereof shall be evidence
of such qualifications and of such company’s
authority to transact business authorized by
this chapter, and of its solvency and credits. ”
Article 21.36 of the Insurance Code provides as follows:
“Should any insurance company, except those
designated in Article 3.61 of this code fail or
neglect to pay off and discharge any execution,
issued upon a valid final judgment against said
company, within thirty (30) days after the notice
of the issuance thereof, then in that event the
certificate of authority of said company to transact
business of insurance shall be revoked, cancelled
and annulled, and said company shall be prohibited
from transacting business of insurance in this
State until said execution be satisfied. ”
We do not find in the Insurance Code or the Code of Criminal
Procedure any limit as to the total number or amount of bail bonds that
a corporate surety may make. However, we do find in Article 17.09
of the Code of Criminal Procedure that if the Judge finds sureties are
not acceptable on a bail bond,then he can order the accused to be re-
arrested and a new, bond to be made.
Section 2 of Article 17.11 of the Code of Criminal Procedure
provides that if any person who has signed as surety on a bail bond is in
default thereon, then he shall be disqualified to sign a surety so long as
he is default on said bond. It further provides that the clerk shall notify
in writing the sheriff, chief of police, or other peace officers of such
default. Also Article 21.36 of the Insurance Code, supra, provides for
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-. .
Honorable Carol S. Vance, page 5 (M-1060)
the revocation of a certificate of authority to transact insurance business
in the event any insurance company fails or neglects to pay off and dis-
charge any final judgment against said insurance company.
In view of our answer to the first part of your question, no answer
is necessary to the second portion thereof.
SUMMARY
The statutes of the State of Texas do not
provide for any limit as to the total number or
amount of bail l%x that a corporate surety
mav make.
Prepared by John H. Banks
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
Sam Jones
Rex White
Lonny Zwiener
Bob Lattimore
SAM MCDANIEL
Staff Legal’ Assistant
ALFRED WALKER
Executive Assistant
NOLA WHITE
First Assistant
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