Texas Resident Fund Surety Bond

A Texas resident fund surety bond is a financial guarantee instrument required of all nursing facility operators licensed under Texas Health and Safety Code (Chapter 242). Both the state statute and Federal Code require an applicant to assure the security of all personal funds of home residents that are deposited with the licensee as a fiduciary. The resident fund bond obligation is more complex than a standard license compliance bond. The bond guarantees that the facility will:

• Hold separately and in trust all residents' funds deposited with the nursing home;
• Administer those moneies on behalf of those residents in the manner directed by 42 U.S.C.A. §1396r(c)(6) and 40 TAC Chapter 19.
• Produce accurate and complete accounting to the residents, their representatives and the depositors and the Department of Aging and Disability Services when requested.
• On termination of each a deposit account must account for all funds received, disbursed and held on hand.
• Return the full balance to the resident or other responsible party representing such resident in accordance with 40 TAC Chapter 19.

The Texas resident fund surety bond penalty (bond amount) is calculated the total funds held. Per the surety bond form, "the amount of the penal sum must be no less than the maximum dollar amount of all resident funds accepted and managed by the home operator at any time during the one-year period preceding the date of execution of the initial surety bond, or the estimated maximum dollar amount of all resident funds to be accepted and managed by the facility at any time during the one-year period following the date of execution of this bond, whichever is greater."

Underwriting of fiduciary bonds is best accomplished by a surety specialist with knowledge about trust funds and agreements in the jurisdiction where the surety bond will be filed and experience with fiduciary obligations generally. Surety bond leader, Surety One, Inc., specializes in judicial and fiduciary bonds. We offer guardianship bonds and miscellaneous fiduciary obligations in all fifty states, Puerto Rico and U.S. Virgin Islands. Application submissions are reviewed and responded to on the same day as they are received. We are the MOST RESPONSIVE surety underwriter in the business. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here to chat live about a Texas resident fund bond application or for any fiduciary bond need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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