Tex. Loc. Gov't Code § 392.0525
Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
In the award of a contract for the construction, reconstruction, improvement, alteration, or repair of any public building or for the completion of any public work, an authority must comply with applicable state laws regarding the execution of a contractor's performance bond and payment bond. However, if authorized by a federal program or federal regulation, an authority may accept, in lieu of a performance bond and payment bond, an unconditional and irrevocable letter of credit in the amount of the contract price and payable to the authority.
Tex. Loc. Gov't. Code § 392.0525