What is a Texas Conduct Surety Bond?

Learn about the Texas Conduct Surety Bonds and why you need one!

Texas Conduct Surety BondBefore you can sell, manufacture, import, or distribute alcoholic beverages anywhere in Texas, the Texas Alcoholic Beverage Commission or TABC will require you to acquire a Texas Conduct Surety Bond along with your permit application.

This type of bond is created to make sure that the business owner will not violate the provisions of the Texas Alcoholic Beverage Law and TABC rules.

The bond amount will depend on how far the establishment is from a public school. If the establishment is more than 1,000 feet away from a public school, the bond amount is $5,000.

If the establishment that sells alcoholic beverages is less than 1,000 feet away from a public school, the bond is amount is $10,000.

The Conduct Surety Bond is required for each of the licenses and permits below:

  • Mixed Beverage Permit
  • Private Club Registration Permit
  • Private Club for Beer and Wine Permit
  • Private Club Exemption Certificate Permit
  • Wine and Beer Retailer’s Permit-Excursion Boat
  • Wine and Beer Retailer’s Permit-Railway Car
  • Wine and Beer Retailer’s Permit
  • Retail Dealer’s On-Premise License
  • Package Store Permit
  • Wine Only Package Store Permit
  • Wine & Beer Retailer’s Off-Premise Permit



Let’s say you’re planning to put up a liquor store. To do this, you have to have a number of ducks in a row which includes getting the necessary credentials in order first. Securing a permit is one of these, and that permit requires a conduct surety bond.

The bond will be a legally binding contract between the following:

Principal – the liquor store owner

Surety – the surety bond company that will guarantee that the principal will not violate any terms stipulated in the bond

Obligee – the state


Who needs this type of bond?

Basically, every establishment that serves, produces, sells, imports, or distributes alcoholic beverages. A separate bond must be obtained for each type of establishment. These are some of them:

  • Restaurants
  • Breweries
  • Liquor stores
  • Convenience stores
  • Bars
  • Wineries
  • Alcohol storage
  • Grocery stores


Forms that you need

  • Bond – L-2-60.2
  • Letter of Credit – L-2-61.4
  • Assignment of Certificate of Deposit – L-2-62.2


How do I get a Conduct Surety Bond?

Talk to us! One of our professional bond agents will be happy to assist you to acquire a conduct surety bond. An underwriter will first make an assessment of your credentials before we guide you through the whole process.

We know how taxing this might be for you. Different facts are battling for mindshare.  Our expert team will help you handle a variety of bond solutions to help grow your business.

If you need further information about conduct surety bonds, you can get a FREE quote here!

We’re looking forward to helping you!

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