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Government Code §2253.027

Text in force on

In force on Sep 01, 2003 · this text took effect Sep 01, 2003 · amended later, effective Sep 01, 2023

LIABILITY OF GOVERNMENTAL ENTITY

(a) If a governmental entity fails to obtain from a prime contractor a payment bond as required by Section 2253.021 : (1) the entity is subject to the same liability that a surety would have if the surety had issued a payment bond and if the entity had obtained the bond; and (2) a payment bond beneficiary is entitled to a lien on money due to the prime contractor in the same manner and to the same extent as if the public work contract were subject to Subchapter J , Chapter 53 , Property Code. (b) To recover in a suit under Subsection (a), the only notice a payment bond beneficiary is required to provide to the governmental entity is a notice provided in the same manner as described by Subchapter C. The notice must be provided as if the governmental entity were a surety.

History: Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 515, Sec. 1, eff. Sept. 1, 2003.

Source: Internet Archive capture, seen Jun 14, 2021 to Jun 29, 2023.

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