Texas Credit Union Fidelity Bond Requirements (2026)
Texas credit unions answer to two fidelity bond rules, not one. The NCUA asset table under 12 CFR 713.5, plus what 7 TAC 91.510 adds if you're state-chartered.
Texas Sequestration Bond
Writs of sequestration,
Writs of sequestration,
bonded same-day under CPRC §62.
Required of every Texas plaintiff seeking a writ of sequestration to take custody of specific personal property claimed in a pending lawsuit. Governed by Texas Civil Practice and Remedies Code Chapter 62. Premium typically 1%–3% of bond amount with collateral.
- Same-day issuance for emergency filings
- Secured-party collateral recovery
- Harris County and all Texas courts
What it is
The bond that accompanies a writ of sequestration.
A Texas sequestration bond is a surety bond posted by a plaintiff obtaining a writ of sequestration — a court order directing the sheriff or constable to take custody of specific personal property that is the subject of a pending lawsuit.
Sequestration is commonly used by secured creditors to recover mortgaged or leased collateral (vehicles, equipment, inventory) before the case is finally decided — particularly when there is evidence the property may be concealed, damaged, or disposed of if left with the defendant. The bond ensures the defendant can recover damages if the sequestration is ultimately determined wrongful.
The bond stays in force throughout the litigation. Defendants can replevy the property by posting a counter-replevin bond under TRCP 696.
What you pay
Premium plus collateral in most cases.
Sequestration bonds are individually underwritten based on plaintiff credit, case merits, and risk that the sequestration may be dissolved.
| Credit / case risk | Premium rate | Typical collateral |
|---|---|---|
| Excellent credit (750+) Strong case merits | 1.0–1.5% | 10–25% of bond |
| Good credit (680–749) Standard case | 1.5–2.0% | 25–40% of bond |
| Fair credit (620–679) Some concerns | 2.0–2.5% | 40–60% of bond |
| Credit-challenged High-risk case | 2.5–3.0% | Up to 100% |
Collateral held for the bond term and released when the case resolves favorably.
How to get bonded
Four steps, coordinated with your attorney.
- 01
Verified petition & order
Plaintiff files verified application under CPRC §62.001. Court sets bond amount at 2× property value.
- 02
Application & credit review
Plaintiff applies. Soft credit pull, financial review. We quote premium and collateral requirements.
- 03
Surety approval & funding
If collateral required, applicant deposits it. Bond issued same-day when possible.
- 04
Writ executed
Sheriff takes property. Bond remains in force through final judgment or release after defendant's counter-replevin.
Legal requirements
Texas statute, issuing court, what the bond covers.
Statute
Texas Civil Practice and Remedies Code Chapter 62 governs sequestration. §62.021 requires the plaintiff to execute a bond before the writ issues.
Issuing court
The Texas district or county court where the underlying case is filed. Harris County: district courts and county courts at law.
Bond amount
Court-set, typically at least twice the value of the sequestered property.
Term
Continuous through final judgment or until the property is replevied by defendant. Premium billed annually.
Who can claim
The defendant, if the plaintiff loses or the sequestration is dissolved as wrongful — can recover property value, lost use, and consequential damages.
Why Surety Bond Houston
Sequestration moves on the sheriff's clock.
Emergency same-day issuance
Sheriff can't execute the writ without the bond on file. We deliver in hours when needed.
Secured-creditor familiar
We write for lenders, dealers, and leasing companies recovering collateral routinely.
Collateral optimized
Strong case merits often qualify for reduced collateral — not the blanket 100% deposit some sureties demand.
Related bonds
Other prejudgment-remedy bonds.
FAQ
Sequestration bond questions we answer every week.
What is a Texas sequestration bond?
A Texas sequestration bond is a surety bond filed by a plaintiff who obtains a writ of sequestration — a court order directing the sheriff to take custody of personal property that is the subject of a pending lawsuit. The bond protects the defendant from wrongful sequestration; if the plaintiff loses or the sequestration is dissolved, defendant can recover damages from the bond.
When is sequestration appropriate in Texas?
Texas Civil Practice and Remedies Code §62.001 authorizes sequestration when the plaintiff has a right to specific personal property that is in danger of being concealed, consumed, disposed of, or materially injured during the pendency of the lawsuit. Typical uses: replevin of collateral, mortgaged goods, leased property, or items subject to a lien.
How much does a Texas sequestration bond cost?
Sequestration bonds typically run 1%–3% of the bond amount per year. A $75,000 sequestration bond commonly costs $750–$2,250 per year. Collateral is often required — typically 20%–50% of the bond amount, depending on credit and case risk.
How is the sequestration bond amount set?
Under CPRC §62.021, the court sets the bond at an amount adequate to protect the defendant — typically at least twice the value of the sequestered property. The bond must cover potential damages if the sequestration is later dissolved or determined wrongful.
What's the difference between sequestration and attachment?
Attachment is used to seize general property (not specifically disputed) as security for a money claim — essentially freezing assets to guarantee judgment. Sequestration is used when the plaintiff claims right to specific personal property — the very property being sued over. Sequestration preserves the disputed property; attachment secures payment of an anticipated money judgment.
Can the defendant replevy sequestered property?
Yes — under TRCP 696, the defendant can post a replevin bond to recover possession of the sequestered property and resume normal use during the litigation. This shifts the surety coverage from the plaintiff's sequestration bond to the defendant's replevin bond.
How fast can a sequestration bond be issued?
Same-day issuance is typical for qualified applicants. Sequestration is often emergency relief to prevent immediate property loss — we prioritize these applications and issue the bond within hours of receiving the verified petition and court order.
Ready when you are
Get your Texas sequestration bond today.
Same-day issuance. Harris County and statewide coverage.