Utility Deposit Bond - Orlando Utilities Commission in Florida

Brief Summary

A utility deposit bond lets a customer meet an Orlando Utilities Commission deposit without handing over cash. For a business opening several meters or a high-usage site, that keeps working capital in the bank while OUC still holds a guarantee that the bills will be paid.

The Orlando Utilities Commission may require a deposit before it starts electric or water service. OUC sets the amount from the customer's credit history and payment record, and a later deposit can be based on twice the average monthly bill. This surety bond guarantees OUC that unpaid utility charges will be covered, in place of all or part of a cash deposit, where OUC accepts a bond for the account.

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How to Apply for a Utility Deposit Bond:

• Get the required deposit amount from OUC for the specific account or premises.
• Confirm with OUC that a surety bond is accepted in place of the cash deposit for that account.
• Provide the legal name of the account holder exactly as OUC has it.
• Complete the bond application and review the quoted premium.
• Deliver the executed bond to OUC in the form it requests.

Detailed Information About the Florida Utility Deposit Bond:

The deposit is set by your credit, not a fixed fee

OUC states that a deposit may be required before service begins and that the amount is based on credit history, the services at the premises and payment history. OUC runs the credit check through Experian. A new customer who pays late in the first six months, or has a forced collection attempt in the first twelve months, can be asked for a deposit based on twice the average monthly bill. So the bond amount is not a published flat figure. It matches whatever deposit OUC assigns to the account.

What the bond guarantees

OUC is the obligee. The customer is the principal. If the account closes or goes delinquent with charges unpaid, OUC can claim against the bond up to its face amount, and the surety then looks to the customer for repayment. The bond does not pay the monthly bills. It only stands behind them.

How long it stays in place

OUC says cash deposits are typically refunded once an account is two years old, provided there were no forced collection attempts and no more than four delinquent payments in the prior 24 months. Plan on keeping the bond in force for at least that long, and ask OUC how a bond is released before you let it lapse.

Before you buy

Ask OUC for the deposit amount on your account and confirm it will accept a surety bond for that account, then confirm the bond form and the exact account name to show on it.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• Orlando Utilities Commission named as obligee.
• Bond amount equal to the deposit OUC assigns.
• Account holder name and service address matching OUC records.
• Credit review of the business or its owners, which shapes the premium.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: