Utility Deposit Bond - Union Oil Company dba Unocal in California
Table of Contents
Brief Summary
When Unocal asks a customer for a deposit before it will extend service or credit, a surety bond can stand in for the cash. You pay a premium, Unocal gets a guarantee from a surety company, and the money you would have handed over stays in your business.
This bond runs to Union Oil Company of California, which does business as Unocal and is listed as a subsidiary of Chevron Corporation in Chevron's annual report filings. It is a deposit bond. It takes the place of a cash deposit and guarantees that the customer pays what it owes Unocal under its service or supply account. Unocal sets the amount, so get the required figure and its bond form before the bond is issued.
We can help with all California bonds!
How to Apply for an Utility Deposit Bond:
- Get the required deposit amount from your Unocal account contact.
- Ask for the bond form Unocal accepts, if it has one.
- Provide the business's legal name exactly as it appears on the Unocal account.
- Complete the bond application and the credit review.
- Pay the premium and receive the signed bond.
- Send the original bond to Unocal as it directs.
Detailed Information About the California Utility Deposit Bond:
Who asks for this bond
Union Oil Company of California, known as Unocal, is a California corporation. Chevron Corporation lists it among its subsidiaries in Exhibit 21.1 to its Form 10-K. Like many energy suppliers, Unocal may ask a commercial customer for security before opening or continuing an account. A cash deposit is one way to give it. A surety bond is another.
What the bond guarantees
The bond guarantees that the customer will pay its bills on the account. If the customer defaults, Unocal can make a claim on the bond and the surety pays up to the bond amount. The customer then has to reimburse the surety in full. The bond protects Unocal, not the customer, so it is not insurance against your own losses.
Amount and form
There is no statute behind this bond. Unocal decides whether a deposit is needed and how large it should be, usually based on expected usage or purchases and the customer's payment history. Ask your Unocal account contact for the required amount, the bond form it accepts and where the original should be sent before you order. Use the customer's legal name exactly as it appears on the account.
How the premium is set
You pay an annual premium that is a fraction of the bond amount. The surety sets it after reviewing the business's credit and finances, and the owner's personal credit for smaller companies.
Eligibility and Requirements for a California Utility Deposit Bond:
- Union Oil Company of California, dba Unocal, named as obligee.
- Bond amount equal to the deposit Unocal requires.
- Principal name matching the Unocal account exactly.
- Surety company authorized to write bonds in California.
- Credit review of the business and, where needed, its owners.
California Utility Deposit Bond FAQs:
Union Oil Company of California, which does business as Unocal. Chevron lists it as a subsidiary in its Form 10-K filings.
The same as the deposit Unocal asks for on your account. Unocal sets that figure, so get it from your account contact before ordering.
Unocal can claim on the bond and the surety will pay up to the bond amount. You then owe the surety everything it paid, plus its costs.
You pay a premium that is a fraction of the bond amount. It depends on your business credit, finances and the size of the bond.
