Utility Deposit Bond - City of Calhoun, GA in Georgia

Brief Summary

Calhoun Utilities sets commercial and industrial deposits case by case, and for a busy business account that figure can be large. A utility deposit bond lets the business guarantee the account with a surety instead of tying up cash, when Calhoun Utilities accepts one.

Calhoun Utilities, operated by the City of Calhoun, Georgia, requires a security deposit and a signed deposit contract for every new service. Residential deposits follow a published schedule tied to credit, while commercial and industrial deposits are set individually by the Customer Service Department. A utility deposit bond guarantees Calhoun Utilities that the account holder will pay, and it is posted in place of a cash deposit.

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How to Apply for a Utility Deposit Bond:

• Call Calhoun Utilities Customer Service at (706) 602-5678 for the commercial or industrial deposit amount on your account.
• Ask whether a surety bond is accepted in place of the cash deposit and get the exact obligee wording.
• Complete the city's application for service and the deposit contract required for each new service.
• Pay the $10 nonrefundable application fee and any past due balances, which must be cleared before connection.
• Complete the bond application, pay the premium and deliver the signed original bond to the city.

Detailed Information About the Georgia Utility Deposit Bond:

Commercial deposits are not on the published chart

Most people who look up Calhoun's deposits find the residential table and assume it applies to them. It does not apply to businesses. The city's Establishing Service page says that for commercial and industrial accounts, as well as Fairmount Sewer, the customer must contact the Customer Service Department. That is where the deposit for a business account is set, and it is the figure a utility deposit bond would need to match.

How residential deposits work

For households the city publishes three tiers based on credit and disconnect history. A new account with a green flag credit result pays $250 for electric, water and sewer together, $225 for electric and water, $150 for electric only, $100 for water and sewer, and $75 for water only. Customers with 2 or more disconnects within 12 months pay $350, $300, $200, $150 or $100 for the same service combinations. A red flag result, or 3 or more disconnects within 36 months, raises those to $500, $450, $300, $200 and $150. A customer who does not provide a Social Security Number is charged the largest calculated deposit for the residence. There is also a $10 nonrefundable application fee.

What the bond does

The bond names Calhoun Utilities, City of Calhoun, as obligee. If the account goes unpaid, the city can claim against the bond and the surety pays up to the bond amount, then collects from the customer. The customer still pays every monthly bill. Confirm with Customer Service that a bond will be accepted for your account, the exact amount, and the obligee wording before the bond is issued.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• City of Calhoun, Calhoun Utilities, 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, which sets the premium.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: