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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
A utility deposit bond lets a customer of City of Ocala utilities cover the required security with an annual premium instead of handing the City a cash deposit that can sit on the account until it closes. It matters most to landlords, tenants of non-owner occupied property and commercial accounts with large monthly bills, because those deposits are sized to usage and are the hardest to get back early.
The City of Ocala requires a deposit before it opens a utility account, under Section 70-683 of the City Code. For residential service the deposit is two times the average monthly bill. A Utility Services Deposit bond, with the City of Ocala as obligee, guarantees payment of the account in place of cash where the City accepts a bond. The City's published residential packet lists cash deposits and a good credit letter waiver, not a bond option, so confirm with Ocala Utility Services that a bond will be accepted for your account before it is issued.
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The deposit is not a flat fee. Ocala's utility application states that the residential deposit is two times the average monthly bill for the service address, so a larger property or a heavier user posts a larger deposit. The bond amount has to match whatever figure the City assigns to your account.
The second surprise is how long the cash stays put. The City's own contract and deposit agreement says non-owner occupied residential deposits cannot be waived and are held on the account until it is closed. Owner occupied customers may ask for the deposit back after two years of excellent payment history, and an owner may have the deposit waived with a letter showing 24 months of good credit history from another utility. Deposits are returned under City Ordinance 2016-17.
The deposit requirement sits in Section 70-683 of the City of Ocala Code of Ordinances, within Chapter 70, which governs City utility service. The City runs electric, water, sewer and sanitation service, so the deposit covers the combined account.
A utility deposit bond is a three party agreement. The customer is the principal, the City of Ocala is the obligee, and a surety company guarantees that the account will be paid. If the customer leaves an unpaid balance, the City can claim against the bond up to its face amount, and the surety then looks to the customer for repayment. The City's residential packet does not describe a bond alternative, so a bond is generally used on larger and commercial accounts by arrangement. Ask Ocala Utility Services to confirm in writing that it will take a bond, the amount it requires and the form it wants before you order one.
Premium is a small share of the bond amount, set by the surety after it reviews the owner's credit and, for a business, its financial strength. It is paid yearly and is not refunded at the end of the term.
For residential service, the City's application states the deposit is two times the average monthly bill for the address. Commercial deposits are set by the City for each account. The bond must equal the amount the City assigns.
The City's published residential packet lists a cash deposit and a good credit letter waiver for owners, and does not describe a bond option. Bonds are arranged account by account, so get written acceptance and the required amount from Ocala Utility Services before buying one.
An owner occupied customer may have the deposit waived with a letter showing 24 months of good credit history from another utility. Non-owner occupied residential deposits cannot be waived under the City's deposit agreement.
Owner occupied customers may request the deposit back after two years of excellent payment history. Non-owner occupied deposits stay on the account until it is closed. Returns are handled under City Ordinance 2016-17.
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