Utility Deposit Bond - Central Georgia EMC in Georgia

Brief Summary

When Central Georgia EMC asks a business for a security deposit before turning on power, a utility deposit bond can stand in for the cash. You pay an annual premium and keep the deposit money in the business, as long as the cooperative agrees to take a bond for your account.

Central Georgia EMC is a member owned electric cooperative and sets its own security deposit requirements for new and existing accounts. A utility deposit bond names Central Georgia EMC as obligee and guarantees that the member will pay its electric bills, up to the bond amount. The bond amount should equal the deposit the cooperative requires for the account.

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How to Apply for a Utility Deposit Bond:

• Apply for service with Central Georgia EMC.
• Get the required deposit amount from the cooperative in writing.
• Confirm Central Georgia EMC will accept a surety bond in place of cash and ask for any required form.
• Have the account holder's legal name exactly as it appears on the service application.
• Complete the bond application and review the quoted premium.
• Pay the premium and deliver the signed bond to Central Georgia EMC.

Detailed Information About the Georgia Utility Deposit Bond:

The deposit amount comes from the cooperative

The most common mistake is shopping for a bond before knowing the number. Central Georgia EMC, not a state agency, decides whether an account needs a deposit and how much. Electric cooperatives in Georgia set deposit rules through their own service policies, and the amount for a commercial account can depend on the expected size of the bills and the member's credit. Get the deposit figure from Central Georgia EMC in writing first, then buy a bond for that amount.

Ask whether a bond is accepted

A cooperative is not obliged to take a surety bond in place of cash. Before the bond is issued, confirm that Central Georgia EMC will accept one for your account and ask whether it has its own bond form or required wording.

What the bond guarantees

The member is the principal and Central Georgia EMC is the obligee. If the member fails to pay for electric service, the cooperative can claim against the bond for the unpaid amount up to the bond limit. The surety pays valid claims and the member must repay the surety in full.

Keeping it in force

The bond stays in force while the account needs a deposit. If the cooperative later raises the deposit, the bond may need to be increased to match.

Cost

The premium is set by the surety based on the bond amount and the applicant's credit and financial strength. You see the exact figure when you apply.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Central Georgia EMC named as obligee.
• Bond amount equal to the deposit the cooperative requires.
• Principal name matching the service account.
• Bond kept in force while a deposit is required on the account.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: