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Texas Government Code - GOV'T § 2253.027. Liability of Governmental Entity

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) If a governmental entity fails to obtain from a prime contractor a payment bond as required by Section 2253.021or fails to include in a lease the lease terms required by Section 2252.909:

(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.  1

(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.  2 The notice must be provided as if the governmental entity were a surety.

(c) A governmental entity is not liable as a surety under Subsection (a)(1) if a person leasing property from the entity fails to submit to the entity the notice of commencement required by Section 2252.909.

1 V.T.C.A., Property Code, § 53.231 et seq.
2 V.T.C.A., Government Code § 2253.041 et seq.
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Cite this article: FindLaw.com - Texas Government Code - GOV'T § 2253.027. Liability of Governmental Entity - last updated January 01, 2024 | https://codes.findlaw.com/tx/government-code/gov-t-sect-2253-027/

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