A Texas next friend bond may be required by a civil court to act in a fiduciary capacity over property and funds. Call AmeriPro Surety Bonds today at 844-589-9732.
AmeriPro Surety Bonds provides applicants with the next friend bond when required by a Texas civil court.
Below, we explain some of the features and the reasoning behind this surety bond’s requirement.
A Texas next friend bond is a type of fiduciary surety bond required by a civil court in a court proceeding regarding property, money, or both.
A next friend bond is required when a person who has obtained property in a judgment is either:
And, is therefore unable or incapable of managing the property or money provided in that judgment.
The bond is required of the “next friend” or guardian ad litem to ensure that the property and any money will be managed correctly.
A next friend bond is also required by state statute, specifically Texas Property Code Prop §142.002, Management by Bonded Manager.
This fiduciary surety bond is required to ensure that the property of the minor or the person who is handicapped is not mismanaged or misappropriated.
The bond, therefore, is a financial guarantee, and is exclusively for the benefit of the minor/handicapped person.
More specifically, the bond is a financial guarantee that should the next friend misappropriate any funds or property, the loss will be fully covered by the surety bond.
By statute, the amount of a Texas next friend bond will be:
Ultimately, the court will instruct the guardian (the surety bond’s principal )as to how much surety bond is required.
The obligee is the entity which is requiring the surety bond.
In the case of a next friend bond, the obligee is the Texas county judge where the court proceedings occur.
The bond guarantees that upon the resolution of the court case, the property will be summarily released by the next friend or guardian ad litem as required.
When you or any legal counsel contacts AmeriPro Surety Bonds, we strongly recommend to have any court documents or letter on attorney letterhead stating the amount of the next friend bond required.
The application, as such, will involve the following:
Although there may be additional criteria, these three, particularly an applicant’s credit, will determine the amount of premium required for the next friend bond.
An important consideration is that the Texas next friend bond renews annually, for as long as the case is active in court.
Between 60 to 90 days before any premium renewal, a notice may be sent out.
Applicants will want to financially prepare for this ongoing bond expense.
The amount an applicant will pay will largely be determined by the credit score.
Good credit applicants should expect to pay around 2% of the bond amount required.
Applicants with lower credit may be required to pay substantially more for the bond.
In almost all cases, AmeriPro Surety Bonds will be able to get a person qualified for bonding.
Call AmeriPro Surety Bonds for this or just about any court-related surety bond requirement.
