A. Prior to the issuance of any permit under the provisions of this chapter, the person making application therefor shall secure and furnish a surety bond in the penal sum of three thousand dollars ($3,000.00), executed by such person as principal and a corporate surety authorized to transact business in the state who has appointed a resident agent for the purpose of notice and service of process with a permanent location and mailing address within the county.
B. The applicant may post a cash bond in lieu of a surety bond but under the same terms. A cash bond shall be held by the city in a noninterest bearing escrow account used only for such cash bonds.
C. A company may post a blanket surety bond of three thousand dollars ($3,000.00) for all of its employees; however, after a significant complaint or multiple complaints against the company or its employees are received by the city, the city council, in its sole discretion, may raise the amount and terms of the bond as a prerequisite for the continued validity of any permits already issued or to be issued to any company employee.
D. Upon the breach of the principal's obligation on such bond, the surety thereon shall be liable to any obligee thereon for damages, court costs and attorney fees not to exceed the face amount of the bond caused by or arising from any act or omission of the principal that constitutes a violation of any ordinance of the city or of the Texas deceptive trade practices-consumer protection act 1 , as now or hereafter amended, in connection with goods and/or services sold, offered, exhibited or delivered by the principal, or any employee, agent or consignee of the principal.
E. The obligation of the surety shall continue for a period of two (2) years from the date of sale or delivery of such goods and/or services, whichever is later, and as long thereafter as required to bring to a final conclusion any litigation pending at the expiration of the two (2) year period instituted by an obligee on the bond for a claim under the Texas deceptive trade practices act, or by the district attorney of the county or the attorney general of the state for violation of the Texas deceptive trade practices act in connection with such sale or delivery of goods and/or services by the principal.
F. Such surety bond shall be verified and shall thereafter be filed with the city secretary.
G. Bond requirement waived for approved application of current city residences. (2016 Code)
Notes
| 1 | 1. Business And Commerce Code § 17.41 et seq. |