1. (a) A Notice of Suspension will be issued to the driver and/or owner in an accident that meets the criteria in §25.1 of this title (relating to Criteria for Establishing Accident Cases for Enforcement). The suspension will be effective 21 days from the date of the notice unless an administrative hearing is requested or the Department receives complete compliance as indicated in subsection (c) of this section.
2. (b) If a hearing is requested timely (within 20 days from the date on the Notice), it will be granted pursuant to Texas Transportation Code (TRC), §601.156. The administrative hearing will be conducted pursuant to TRC 521 Subchapter N and 37 TAC §§15.81-15.85 of this title (relating to Driver Improvement).

3. (c) Compliance acceptable to prevent a suspension if filed prior to the effective date of the suspension, or to lift the suspension after the effective date is as follows:

   1. (1) information indicating liability insurance coverage at the time of the accident in the form of a letter on insurance company letterhead,

   2. (2) evidence of settlement indicating no probability of a judgment, such as:

      1. (A) a copy of the front and back of a canceled check/checks totaling the amount of security required in the accident,
      2. (B) evidence that the uninsured party had been paid by another party/parties involved or their insurance company, or
      3. (C) proof that the damaged vehicle was illegally parked at the time of the accident.

   3. (3) form SR-11 (Release) or a properly executed document releasing the at-fault individual from all liability. The release must be signed by all owners of the damaged property and /or by all parties who sustained personal injury.

      1. (A) the document must be notarized or signed before two uninvolved witnesses.
      2. (B) if both the owner of the vehicle and the driver are suspended under one accident case, a release of either individual is deemed a release for both unless the release expressly states otherwise.

   4. (4) form SR-19 (Installment Agreement) or other similarly styled document between the parties which must be:

      1. (A) executed by the uninsured party,
      2. (B) accepted by all parties who sustained damage in the accident, and
      3. (C) signed before a notary or two witnesses.

   5. (5) security deposited in accordance with the original Notice of Suspension which must be:

      1. (A) in cash,
      2. (B) by cashier's check or money order payable to the Texas Department of Public Safety, or
      3. (C) by a surety bond written by an insurance company authorized to execute surety bonds in this state, and
      4. (D) accompanied by form SR-22 (insurance certificate) and form SR-22A (certification of a 6 month prepaid liability insurance policy), and
   6. (6) a reinstatement fee if compliance is not received within 21 days from the date on the Notice of Suspension, or
   7. (7) a bankruptcy petition indicating "filed" by the court or a final order of bankruptcy along with a matrix listing the creditor/creditors in the accident. When bankruptcy is filed in an accident case, no reinstatement fee is required.
4. (d) When the owner and operator are separate persons and each one is required to deposit security, a joint deposit may be made with a stipulation in writing that such deposit is on behalf of both persons required to deposit the security and will be acceptable compliance for both the owner and operator. If no stipulation of joint deposit is received, the deposit will be filed on behalf of the depositor only.
5. (e) Each person depositing security that must file proof of insurance in the form of an SR-22 in his/her name, must also file form SR-22A as stated in (c)(5)(D) of this section.

6. (f) Disbursement of security.

   1. (1) security will be released to the injured or damaged party upon receipt of a certified copy of a judgment, form SR-42 (Transcript of Civil Proceedings) and form SR-61 (Application for Payment of Judgments Out of Security Deposited).

      1. (A) security released will be in the amount of the judgment.
      2. (B) if the amount of security on file does not satisfy the judgment, the driving privileges of the negligent party will be suspended under the judgment provisions for the balance of the judgment.
      3. (C) if the amount of security on file exceeds the amount of the judgment, the depositor will be sent form SR-14 or SR-14A (Application for Return of Security), to have the balance disbursed.
   2. (2) security deposit will be released to the damaged or injured party upon receipt of form SR-11 (Release), signed by the damaged party and form SR-45 (Release of Deposit), signed by the depositor.
   3. (3) security deposit will be released to the depositor or person for whom security is deposited by showing eligibility and filing a completed form SR-14 or SR-14A (Application for Return of Security Deposit). Eligibility may be shown by evidence of a release from liability, two year anniversary of accident date for initial suspensions, or two year anniversary date from the date of deposit for suspensions based on an installment agreement in default.
   4. (4) if the depositor is deceased, the deposit may be released to the person named as executor of his estate. The appropriate form/forms as indicated in paragraphs (2) or (3) of this subsection, along with a copy of the will, or a Letter of Testamentary must be filed to have the monies disbursed.

7. (g) If an installment agreement is filed as compliance in an accident case, upon receipt of form SR-73 (Notice of Default), the license of the person who defaulted on the agreement will be suspended. Compliance may be in the form of:

   1. (1) a release as stated in subsection (c)(3) of this section,
   2. (2) a security deposit as stated in subsection (c)(5) of this section, or
   3. (3) an installment agreement granted by order of a court where an agreed judgment has been rendered, and
   4. (4) a reinstatement fee if compliance is not received prior to the effective date of the suspension, or
   5. (5) bankruptcy as stated in subsection (c)(7) of this section.
8. (h) If, after two years from the accident date for initial suspensions or two years from the date on the Notice of Default for suspensions based on an installment agreement in default, no judgment has been filed against the party at fault, the suspension may be withdrawn by filing form SR-60 (Application to Waive Requirement to Deposit Security), and any required reinstatement fee.

Source Note:The provisions of this §25.2 adopted to be effective June 22, 2004, 29 TexReg 5946.