Utility Deposit Bond - Marion County Utilities in Florida

Brief Summary

A utility deposit bond lets a customer of Marion County Utilities guarantee its water, sewer and reclaim bills without leaving cash sitting on deposit with the County. For a business opening several accounts or a larger service, that keeps working capital in the business. The bond is written for the amount the utility requires, and you pay an annual premium instead.

Marion County Utilities, part of the Marion County Board of County Commissioners, collects security deposits to guarantee payment for water, sewer and reclaim service under Marion County Ordinance No. 09-05, Section 2. A utility deposit bond names Marion County Utilities as obligee and stands in place of a cash deposit where the utility accepts one. Confirm the deposit amount and that a surety bond is accepted for your account before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Ask Marion County Utilities for the deposit amount on your account and whether a surety bond is accepted in place of cash.
• Request any County bond form or required obligee wording.
• Provide the account holder's legal name and service address exactly as they will appear on the utility account.
• Complete the bond application and review the quoted premium.
• Deliver the executed bond to Marion County Utilities before service is set up.
• Keep the bond in force for as long as the account is open.

Detailed Information About the Florida Utility Deposit Bond:

Check whether you need a deposit at all

Many residential customers pay a deposit they could have avoided. Under the County's New Service Requirements, residential applicants pay a security deposit of $50.00 for water and $100.00 for sewer if applicable. That deposit can be waived by asking the office to run a credit check for a $5.00 fee, or by bringing a letter of credit from another public utility you currently use. That letter must state that you have had service in your name for the past twenty four consecutive months. Deposits and service charges are due at the time of application unless the deposit is waived.

Where a bond fits

A surety bond matters most for business and larger accounts, where a cash deposit ties up money for as long as service stays on. The bond guarantees Marion County Utilities that the customer will pay its bills for water, sewer and reclaim service. If the customer leaves an unpaid balance, the utility can claim against the bond up to its amount, and the customer must repay the surety. The bond does not stop the utility from disconnecting service for nonpayment.

Rules that come with the account

The County's service agreement states that deposits are collected and refunded under Marion County Ordinance No. 09-05, Section 2, that a deposit may be applied to any amount the customer owes, and that limited liability companies must provide a personal guarantee. A bond does not replace that personal guarantee.

Before you buy

Ask Marion County Utilities for the deposit amount on your account and confirm that a surety bond is accepted in place of cash, along with any required bond form. Have the account name and service address exactly as they will appear on the account.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• Marion County Utilities named as obligee.
• Bond amount equal to the deposit the utility requires for the account.
• Account name on the bond matching the utility application.
• Personal guarantee from the owners of an LLC account, which the bond does not replace.
• Credit review by the surety, which shapes the premium.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: