Fillable Performance Bond Form printable pdf download

PERFORMANCE BOND

(Texas Health & Safety Code, §712.067)

BOND NUMBER __________

KNOW ALL MEN BY THESE PRESENTS: That _____________________________

(“Cemetery”), having a place of business in _______________________, __________________

County, Texas, as principal, and _____________________ (“Surety”), authorized to conduct and

carry on a general surety business in the State of Texas, as surety, are held and firmly bound unto

the Banking Commissioner of Texas (“Commissioner”) and his successors in office, in the sum

of __________________ Dollars ($ _________), for the payment of which Cemetery and Surety

bind themselves, their heirs, executors, administrators, successors and assigns, jointly and

severally, firmly by these presents.

WHEREAS, Cemetery offers to sell or plans to offer for sale, directly or through one or more

duly authorized agents, mausoleum space prior to the construction of such space (“Undeveloped

Mausoleum Space”), which Undeveloped Mausoleum Space is to be in a mausoleum physically

located at ______________________ and includes ______ casket crypt spaces and ______

niche spaces; and

WHEREAS, Cemetery is subject to Texas Health & Safety Code (“Code”), Chapter 712,

Subchapter D, relating to the Sale of Undeveloped Mausoleum Space, including without

limitation §712.064, which requires Cemetery to commence and complete construction of the

Undeveloped Mausoleum Space in accordance with the time periods established in that section

or, upon the request of the buyer,

refund the entire amount paid for the Undeveloped

Mausoleum Space and, if applicable, the net income earned; §712.066, which requires that sales

contracts for Undeveloped Mausoleum Spaces include certain disclosures; and §712.067, which

authorizes Cemetery to post a bond in lieu of establishing the preconstruction trust otherwise

required by the Code; and

WHEREAS, Cemetery is required and agrees to enter into a written sales contract (“Contract”)

with each buyer of Undeveloped Mausoleum Space that includes the disclosures required by

§712.066 of the Code and to comply with the terms of the Contract and the substantive

requirements of such disclosures.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Cemetery

promptly and faithfully performs its obligations under a Contract, then this obligation shall be

null and void; otherwise, it shall remain in full force and effect for a period commencing on the

____ day of ________________, _____ and continuing until cancelled in accordance with the

terms hereof.

Whenever the Cemetery shall be, and is declared by the Commissioner to be, in default of an

obligation under a Contract or the substantive requirements of the disclosures required by

§712.066 of the Code, Surety, promptly upon receipt of the Commissioner’s sworn notice of

default, must refund to the Contract buyer the amount due under §712.064 as determined by the

Commissioner and reflected in the Commissioner’s notice of default.

This Bond is a continuing obligation and shall remain in full force and effect until cancelled as

provided for below, provided that, regardless of the number of years this Bond remains in effect,

in no event shall the aggregate liability of the Surety exceed the sum of this Bond.

Performance Bond Form