BOND REQUIREMENTS.

(a) Except as provided by Subsection (c), 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 232.205, 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) A bond required by this section must, for a bond for construction of water and sewer service facilities, be conditioned on the construction or installation of facilities that will be in compliance with the model rules adopted under Section 16.343, Water Code.

(c) The commissioners court may, in its sole discretion, allow a person to stop maintaining a bond for construction of sewer service facilities under this section for a lot that does not have an installed sewer service facility if:

(1) the person has completed the installation of all water facilities and roads and streets required by this subchapter;

(2) the owner of the lot has not resided on the lot for a period of 60 months after the date of execution of the deed to the owner;

(3) the person delivers to the commissioners court an affidavit as described by Subsection (d) from the owner; and

(4) the lot has sufficient space to accommodate a sewage facility that complies with Chapter 366, Health and Safety Code, and the construction standards for On-Site Sewage Facilities adopted by the Texas Commission on Environmental Quality and other law and rules applicable to sewage facilities.

(d) The affidavit under Subsection (c)(3) must include language substantially similar to the following:

"I understand that the seller of my lot is obligated to install an on-site sewage facility on the lot or maintain a bond for the installation of an on-site sewage facility for a period of 60 months after the date I purchased the lot. I affirm that I have not resided on my lot for the previous 60 months. I understand that I may not be eligible to receive water or electricity service unless I install a septic facility on my lot. I voluntarily assume all financial responsibility to hire a licensed installer to install an on-site sewage facility that complies with:

(1) Subchapter G, Chapter 232, Local Government Code, regarding subdivision platting requirements;

(2) the model rules adopted under Section 16.343(c), Water Code, regarding septic systems;

(3) Chapter 366, Health and Safety Code; and

(4) the construction standards for On-Site Sewage Facilities adopted by the Texas Commission on Environmental Quality and other law and rules applicable to sewage facilities."