(a) Cash security may be applied only to the payment of:
(1) a judgment rendered against the person on whose behalf the deposit is made for damages arising out of the collision; or
(2) a settlement, agreed to by the depositor, of a claim arising out of the collision.
(b) For payment under Subsection (a), the action under which the judgment was rendered must have been instituted before the second anniversary of the later of:
(1) the date of the collision; or
(2) the date of the deposit, in the case of a deposit of security under Section 601.162(b).