Utility Deposit Bond - Montgomery Water Works & Sanitary Sewer Board in Alabama

Brief Summary

When the Montgomery Water Works & Sanitary Sewer Board asks for a deposit before it opens or keeps an account, a utility deposit bond can stand in for the cash. The Board gets the same protection against unpaid bills, and your business keeps its money in operations instead of sitting with the utility.

A utility deposit bond guarantees payment of water and sewer bills owed to the Montgomery Water Works & Sanitary Sewer Board. The Board sets the deposit amount for the account and decides whether it will take a bond in place of cash. Get the required amount and the Board's bond form before the bond is issued.

We can help with all Alabama bonds!

How to Apply for a Utility Deposit Bond:

• Ask the Board for the deposit amount required on the account.
• Confirm the Board will accept a surety bond in place of cash for that account.
• Get the Board's bond form if it uses one.
• Provide the account holder's legal name and service address exactly as on the account.
• Complete the bond application and review the premium quote.
• Deliver the signed bond to the Board and keep a copy for your records.

Detailed Information About the Alabama Utility Deposit Bond:

What this bond does

The Montgomery Water Works & Sanitary Sewer Board provides water and sewer service in Montgomery, Alabama. Like most utilities, it can ask a customer to put up security before service starts or after a change in payment history. A utility deposit bond is one way to post that security. If the customer leaves bills unpaid, the Board can make a claim against the bond, and the surety pays up to the bond amount and then looks to the customer for repayment.

Who usually posts it

Utility deposit bonds are most often used by commercial customers, developers, property managers and other accounts where a cash deposit would tie up a meaningful amount of money. A bond is a promise backed by the surety. It is not insurance for the customer, and the customer still owes every bill.

How the amount is set

The Board sets the security amount for each account. Utilities commonly base it on expected usage for the service location. Ask the Board's customer service office for the exact figure, whether it accepts a surety bond in place of a cash deposit for your account, and whether it requires its own bond form. Have the bond written to match that figure and form, with the Board named as obligee, and confirm the filing steps with the Board before the bond is issued.

What it costs

You pay a premium, not the full deposit. The surety prices it from the bond amount and the applicant's credit and financial history. Bonds for larger accounts may call for business financial statements.

Eligibility and Requirements for a Alabama Utility Deposit Bond:

• Montgomery Water Works & Sanitary Sewer Board named as obligee.
• Bond amount equal to the security the Board sets for the account.
• Principal name matching the utility account holder.
• Credit review of the business or owner to set the premium.
• Renewal kept in force for as long as the Board requires security on the account.

Alabama Utility Deposit Bond FAQs:

Official and Additional Resources for the Alabama Utility Deposit Bond: