Surety Bond Encyclopedia

Utility Deposit (Water) Bond - City of East Point, GA in Georgia

Brief Summary

A utility deposit bond lets an East Point water customer give the city a surety guarantee instead of handing over a cash deposit. For a business opening several accounts, or a property owner setting up service at multiple addresses, that keeps cash in the operation instead of sitting on account with the utility.

The City of East Point, through its Customer Care office, collects a deposit before it opens water service. Its published amounts are $75 for a residential water account and $100 for a commercial water account, plus a $60 connection fee that a bond does not cover. A utility deposit bond guarantees the customer's water charges in place of that cash deposit, and the city has to agree to take a bond before you buy one.

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How to Apply for a Utility Deposit (Water) Bond:

Ask East Point Customer Care whether a surety bond will be accepted in place of the cash deposit for your account.
Get the bond amount the city wants and any city bond form in writing.
Name on the bond must match the name on the utility service application.
Complete the bond application and pay the premium.
Deliver the signed bond to Customer Care with your service application.
Pay the $60 connection fee separately, since the bond does not cover it.

Detailed Information About the Georgia Utility Deposit (Water) Bond:

Check the deposit figure first

Most people start with the wrong number. East Point charges different water deposits by account type. The city's Customer Care page lists a $75 deposit for residential water and a $100 deposit for commercial water, with a $60 connection fee on top. Customers taking electric service as well pay a separate electric deposit. The bond replaces the deposit only. It does not cover the connection fee or same-day service charges.

What the bond guarantees

The City of East Point is the obligee. The customer is the principal. If the account closes or is cut off with unpaid water charges, the city can make a claim on the bond up to its face amount, and the surety then seeks repayment from the customer. A cash deposit works the same way in reverse: the city applies it to the final bill, refunds any difference, and sends any remaining balance not paid within 45 days of the due date to collections.

Confirm the city will accept a bond

The city's published service pages describe cash deposits and a Landlord Agreement that keeps a deposit on file between tenants. They do not describe a bond option or a bond form. Before you buy, ask East Point Customer Care whether it will take a surety bond for your account, the amount it wants, and whether it has its own bond form. Commercial applicants should also have the lease or deed, federal tax ID, business license or application with receipt, and corporate officer pages ready, since the city asks for those to open the account.

Cost

Premium is set by the surety based on the bond amount and the applicant's credit and account history. You pay it each year the bond stays in force.

Eligibility and Requirements for a Georgia Utility Deposit (Water) Bond:

City of East Point named as obligee.
Bond amount at least equal to the deposit the city sets for the account type.
For commercial accounts, the city also asks for a lease or deed, federal tax ID, business license or application with receipt, and corporate officer pages if incorporated.
A notarized letter of authorization if the applicant is not the owner, lessee or tenant.
Credit review by the surety.

Georgia Utility Deposit (Water) Bond FAQs:

How much is the East Point water deposit?

The city's Customer Care page lists $75 for a residential water account and $100 for a commercial water account. Electric service carries its own separate deposit, and a $60 connection fee applies to new service.

Will East Point take a bond instead of cash?

The city's published pages describe cash deposits and a Landlord Agreement, not a bond option. Ask Customer Care to approve a bond for your account and confirm the amount and form before the bond is issued.

What happens to the deposit when I close the account?

The city applies the deposit to the final bill and refunds any difference. If the final bill is larger than the deposit, the balance is due within 45 days after the due date or the account goes to collections. With a bond, the city would claim against the bond for unpaid charges instead.