(a) Unless a person has completed the installation of all water and sewer service
facilities required by this subchapter on the date that person applies for final approval
of a plat under Section 232.024, the commissioners court shall require the subdivider of the tract to execute and
maintain in effect a bond or, in the alternative, a person may make a cash deposit
in an amount the commissioners court determines will ensure compliance with this subchapter. A person may not meet the requirements of this subsection through the use of a letter
of credit unless that letter of credit is irrevocable and issued by an institution
guaranteed by the FDIC. The subdivider must comply with the requirement before subdividing the tract.
(b) The bond must be conditioned on the construction or installation of water and
sewer service facilities that will be in compliance with the model rules adopted under
Section 16.343, Water Code.
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