Utility Deposit Bond - Orange County, FL in Florida

Brief Summary

The deposit Orange County Utilities asks for is set for your account, not a flat county figure, and on a large commercial or multifamily account it can be substantial. A surety bond can stand in for that deposit so the money stays in your business. Get the exact deposit figure and required wording from Orange County Utilities first, then the bond can be issued to match.

Orange County Utilities requires security deposits on utility service accounts under county Resolutions 2009-M-27 and 2009-M-28. The deposit secures the customer's obligation to keep the proper deposit amount on hand for periodic utility charges. The Utility Deposit bond is posted by the account holder in favor of Orange County, Florida, in the amount Orange County Utilities sets for the account.

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How to Apply for a Utility Deposit Bond:

• Ask Orange County Utilities for the deposit amount on your account in writing.
• Confirm that a surety bond is accepted for your account and ask for any required form or wording.
• Have the account holder's legal name and service address exactly as on the utility account.
• Complete the bond application and review the quoted premium.
• Pay the premium and deliver the executed bond to Orange County Utilities before service starts.
• Keep the bond in force for as long as the county requires a deposit on the account.

Detailed Information About the Florida Utility Deposit Bond:

Who posts this bond

Orange County Utilities provides water, wastewater and reclaimed water service in much of unincorporated Orange County. Customers opening accounts, especially commercial, industrial and multifamily accounts, may be required to post a security deposit before service begins. The account holder posts the bond and Orange County, Florida is the obligee.

How the amount is set

There is no single county-wide figure. Account security deposits are governed by Resolutions 2009-M-27 and 2009-M-28, as referenced in Resolution 2018-M-21 adopted by the Board of County Commissioners. Orange County Utilities sets the amount for each account, so ask for the exact figure in writing before you apply.

What the bond guarantees

The county's standard security language describes the obligation as the applicant's duty to maintain the appropriate deposit amount for periodic utilities charges. If the customer leaves bills unpaid, Orange County can claim against the security for the amount owed, and the customer must repay the surety for any amount it pays.

Bond or letter of credit

Resolution 2018-M-21 approved a standard letter of credit form for utility account security deposits. Customers who prefer not to use bank credit can request a surety bond instead. Confirm that Orange County Utilities will accept a surety bond for your account, and get any required bond form and filing instructions, before the bond is issued.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• Orange County, Florida named as obligee.
• Bond amount equal to the deposit Orange County Utilities sets for the account.
• Surety authorized to do business in Florida.
• Principal name matching the utility account holder.
• Credit and financial review, with larger deposits drawing closer underwriting.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: