Utility Deposit Bond - Cobb County Electric Membership Corporation in Georgia

Brief Summary

When Cobb EMC asks a new member for a deposit after the credit check, that is cash the business cannot use for anything else until it is refunded. A utility deposit bond is a way to ask Cobb EMC to accept a surety guarantee in place of that cash, so the money stays in operating funds.

Cobb Electric Membership Corporation runs a soft credit review through Equifax on every new service request and may require a deposit based on the result. The utility deposit bond is posted by the member in favor of Cobb EMC and guarantees payment of electric bills up to the bond amount. Cobb EMC is a member owned cooperative, so confirm with Cobb EMC that it will accept a bond for your account and in what amount before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Submit the service request to Cobb EMC and complete the Equifax soft credit review.
• If a deposit is required, ask Cobb EMC whether a surety bond is accepted in place of cash and the amount needed.
• Request Cobb EMC's bond form if it has one.
• Provide the business name and account details exactly as Cobb EMC has them.
• Pay the bond premium and receive the signed bond naming Cobb EMC as obligee.
• Deliver the original bond to Cobb EMC and confirm the deposit requirement is cleared.

Detailed Information About the Georgia Utility Deposit Bond:

The deposit comes from the credit check

Most new members do not realize the deposit is decided at sign up. Cobb EMC's Start New Service page says a soft credit review through Equifax is required when starting service, and that a deposit may be required based on that credit check. If your credit file is frozen, the freeze has to be lifted temporarily before the request can go through. Business accounts are set up through a Cobb EMC office or member care by phone, not the online residential flow.

What the bond does

The member is the principal, Cobb EMC is the obligee and the surety company guarantees payment. If the account closes or goes unpaid with a balance owed, Cobb EMC can claim against the bond up to its face amount. The surety then seeks repayment from the member. The bond does not pay ongoing bills. It only stands behind them in the way a cash deposit would.

Confirm acceptance first

Cobb EMC is a private electric cooperative, not a government agency, and its public service page lists cash, check or money order as deposit payment methods. Before buying a bond, ask Cobb EMC whether it will accept a surety bond for your account, what amount it requires and whether it has its own bond form. Get those answers in writing so the bond matches.

Other charges

The Start New Service page lists a $30 service establishment fee on the first bill and a $20 connect fee for same day service requests by phone. Those are separate from any deposit or bond.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Cobb Electric Membership Corporation named as obligee.
• Bond amount equal to the deposit Cobb EMC sets for the account.
• Account holder name on the bond matching the Cobb EMC service account.
• Surety company authorized to write bonds in Georgia.
• Credit review of the business owner by the surety, which mainly affects the premium.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: