Utility Deposit Bond - City of Foley dba Riviera Utilities in Alabama
Table of Contents
Brief Summary
Riviera Utilities accepts a bond in place of a cash deposit, which matters most for commercial accounts where the deposit is sized to your expected bills. A bond keeps that cash in your business and still satisfies the utility before service starts.
The Utilities Board of the City of Foley, doing business as Riviera Utilities, requires each customer to place a deposit before service, and its policy allows that deposit as cash, an indemnity bond, or a letter of credit. Riviera sets the amount. For water service the deposit is based on an estimated two months of billing, and commercial customers call Riviera for a deposit quote.
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How to Apply for an Utility Deposit Bond:
- Call Riviera Utilities for a commercial deposit quote, at 251-943-5001 in Foley or 251-626-5000 in Daphne.
- Tell Riviera you plan to post an indemnity bond instead of cash and ask for any required bond form.
- Apply for a bond in the exact amount Riviera quotes.
- Name the Utilities Board of the City of Foley dba Riviera Utilities as obligee.
- Deliver the executed bond to Riviera before service begins.
- Keep the bond in force for as long as Riviera requires the deposit.
Detailed Information About the Alabama Utility Deposit Bond:
A bond is an accepted alternative to cash
Many customers assume an utility deposit has to be paid in cash. Section 4.4 of the Riviera Utilities Water Department Policy Manual says each customer must place on deposit a cash amount, an indemnity bond, or a letter of credit in an amount Riviera establishes. The bond on this page is that indemnity bond option, with the Utilities Board of the City of Foley as obligee.
How the amount is set
There is no single bond amount. Under the water policy, Riviera estimates two months of water billing to set the deposit. If no usage history exists, it compares similar users or looks at anticipated usage, and no deposit may be lower than Riviera's residential amount. Riviera's posted residential deposits are $300 for electric, $100 for gas, $75 for water and $23 for sanitation. Commercial customers are directed to call for a deposit quote, and that quote is the figure your bond should match.
Who may not need one
Riviera says residential deposits can be waived or reduced with an adequate credit score from Online Utilities Exchange. Residential deposits are also waived for transfer accounts with a satisfactory payment history and for Riviera employees. Residential deposits are refunded after two years of satisfactory payment.
Deposits can go up
After a tampering incident, the water policy raises the customer's deposit to six times the average monthly bill over the prior twelve active months. If you post a bond and the required deposit rises, the bond amount will need to rise with it.
What the bond guarantees
The bond promises Riviera Utilities that your utility bills will be paid. If the account goes unpaid and Riviera makes a valid claim, the surety pays and then looks to you for repayment. Premium is set by the surety from the account holder's credit and financial picture. Confirm the deposit amount, bond form and filing steps with Riviera Utilities before the bond is issued.
Eligibility and Requirements for an Alabama Utility Deposit Bond:
- Obligee: the Utilities Board of the City of Foley, doing business as Riviera Utilities.
- Bond amount equal to the deposit Riviera establishes for the account.
- Account holder name on the bond matching the service application.
- Bond increased if Riviera raises the required deposit.
- Credit review by the surety to set the premium.
Alabama Utility Deposit Bond FAQs:
Yes. Riviera's water policy lets customers place the deposit as cash, an indemnity bond, or a letter of credit.
The same as the deposit Riviera sets for your account. For water service that is based on about two months of estimated billing. Commercial customers get a quote by calling Riviera.
Riviera says residential deposits can be waived or reduced with an adequate credit score from Online Utilities Exchange, and are waived for transfers with good payment history and for Riviera employees.
You pay a premium set by the surety based on credit and financial strength. The full bond amount is only at risk if bills go unpaid, Riviera makes a valid claim, and you do not reimburse the surety.
