Can any surety company issue a Performance and/or Payment Bond?
No, there are some restrictions that apply. • Federal construction projects require that the corporate surety appear on the Department of the Treasury’s Listing of Approved Sureties (Department Circular 570) or that the contracting officer determine the acceptability of an individual surety in accordance with FAR §282.03. • The sureties on public work or private work must meet the requirements of Insurance Code, §3503.005 (formerly Art. 7.19-1(c)) and be a surety company that is authorized and admitted to write surety bonds in this state. • Texas does not recognize an individual surety and if the amount of the bond exceeds $100,000 the surety must also hold a certificate of authority from the United States Secretary of the Treasury to qualify as a surety on obligations permitted or required under federal law or reinsure the amount in excess of $100,000 with a reinsurer authorized and admitted as a reinsurer in this state and qualify as a surety or reinsurer under federal law. You may a
