Utility Deposit Bond - City of Cairo, GA in Georgia

Brief Summary

Opening a large electric or natural gas account with the City of Cairo can mean a sizable security deposit. A utility deposit bond lets the customer post a surety guarantee in place of cash, when the city accepts one, so working capital stays in the business instead of sitting in a utility deposit account.

The City of Cairo, Georgia owns and operates its own electric distribution system and natural gas distribution system, serving residential, commercial and industrial customers inside and outside city limits. A utility deposit bond guarantees the city that the account holder will pay utility bills, and it stands in for some or all of the cash deposit the city would otherwise hold. The City of Cairo is the obligee.

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How to Apply for a Utility Deposit Bond:

• Ask the City of Cairo for the deposit amount on your electric or gas account and whether a surety bond is accepted in place of cash.
• Get the exact obligee name and any city bond form or required wording.
• Provide the legal name of the account holder exactly as it will appear on the utility account.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed bond.
• Deliver the original bond to the city before service is connected.

Detailed Information About the Georgia Utility Deposit Bond:

Who this bond is for

Cairo is a municipal utility town. The city itself sells electricity and natural gas through its Energy Services department, and natural gas is offered for firm and interruptible loads. Because the city is the supplier, the City of Cairo is the party that sets the deposit and the party named on the bond.

The bond is used most often by commercial and industrial customers whose expected monthly usage would produce a large cash deposit. Instead of handing over that cash, the customer buys a bond for the deposit amount. If the account later goes unpaid, the city can make a claim on the bond, and the surety pays up to the bond amount and then looks to the customer for repayment.

What to settle with the city first

The deposit amount, whether the city will take a bond in place of cash for your account, and the exact bond wording all come from the City of Cairo. Before the bond is issued, confirm the required amount, the obligee name exactly as the city wants it, and where the original bond should be delivered. Cairo's utility billing is handled by the city's Administration Division, and Energy Services handles electric and gas service questions.

How the premium is set

The premium is a yearly charge based on the bond amount and the credit and financial strength of the business or individual applying. It is not a deposit and it is not refunded when the account closes.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• City of Cairo, Georgia named as obligee.
• Bond amount equal to the deposit the city sets for the account.
• Principal name matching the utility account holder.
• Surety authorized to write bonds in Georgia.
• Credit review of the business and its owners.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: