Utility Deposit for Water Service Bond - City of Mobile, AL in Alabama

Brief Summary

Opening a business water account in Mobile means posting a deposit with MAWSS, and the deposit does not have to be cash. MAWSS accepts an indemnity bond in its place, so a restaurant, laundry or multi-site operator can keep working capital in the business instead of sitting on a utility account.

Water and sewer service in Mobile is provided by the Mobile Area Water and Sewer System (MAWSS), run by the Board of Water and Sewer Commissioners of the City of Mobile. MAWSS requires every customer to place a deposit on file, and its policy allows that deposit to be made in cash, by indemnity bond or by an irrevocable standby letter of credit. Business accounts carry a minimum deposit of $225, and MAWSS sets the final amount by business type, meter size and average usage.

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How to Apply for a Utility Deposit for Water Service Bond:

• Request business water service from MAWSS and get the required deposit amount from Customer Service.
• Apply for the bond in the exact legal name that will appear on the MAWSS account.
• Review the premium quote and pay it to have the bond issued.
• Deliver the executed indemnity bond to MAWSS within 10 days of the service request, along with the service charge.
• Keep the bond in force for as long as the account is open, and increase it if MAWSS raises the deposit after review.

Detailed Information About the Alabama Utility Deposit for Water Service Bond:

Who the bond is for

The bond guarantees payment of water and sewer bills to MAWSS. If the account holder closes or defaults with an unpaid balance, MAWSS can recover that balance from the bond, up to its face amount. The customer opening the account posts the bond.

Under Section 4.9 of the MAWSS Policy and Procedure Manual, MAWSS requires each customer to place on deposit a cash amount, indemnity bond or letter of credit, in an amount established by order of the Board. Commercial deposits are set in Section III of the Board's Fee Schedule, and the manual states that all commercial deposits may be in the form of cash, letter of credit or bond.

How the amount is set

For new business service, MAWSS requires a minimum deposit of $225. The final figure is determined by MAWSS based on the type of business, the meter size and average usage, so a high volume user should expect a larger bond than a small office. MAWSS gives the exact figure when you request service. Call Customer Service at 251.694.3100 to get your number before you apply for the bond.

The amount can change

After 12 months MAWSS reviews the payment history. If the account was delinquent during the year, or if average billing is higher than the deposit on file, MAWSS may raise the deposit. MAWSS also reserves the right to require a larger deposit from customers with a history of delinquent accounts. If that happens, the bond amount has to be increased or a rider issued.

Timing

The deposit and service charges are due within 10 days of MAWSS receiving the service request. The service charge is $60 for next business day service or later. Confirm the current bond form and filing steps with MAWSS before the bond is issued.

Premium

The surety sets the premium after reviewing the business and its owners, mainly credit, time in business and the size of the bond.

Eligibility and Requirements for a Alabama Utility Deposit for Water Service Bond:

• Board of Water and Sewer Commissioners of the City of Mobile (MAWSS) as obligee.
• Bond amount equal to the deposit MAWSS sets, which is at least $225 for business service.
• Account name and service address on the bond matching the MAWSS account.
• Owner or business credit review by the surety.

Alabama Utility Deposit for Water Service Bond FAQs:

Official and Additional Resources for the Alabama Utility Deposit for Water Service Bond: