Utility Deposit Bond - Coweta-Fayette Electric Membership Corporation in Georgia
Table of Contents
Brief Summary
If Coweta-Fayette EMC requires a security deposit on an account, an utility deposit bond can stand in for the cash when the cooperative agrees to accept one. The account holder pays a premium instead of tying up the deposit for the life of the service.
Coweta-Fayette Electric Membership Corporation, the member owned cooperative serving parts of Coweta, Fayette and neighboring Georgia counties, collects a deposit and a $25 membership fee when a member applies for service. Its published FAQ lists the standard deposit at $175 and notes that applicants with good payment history at another utility can ask about a waiver. An utility deposit bond names the cooperative as obligee and guarantees payment of the member's electric bills up to the bond amount. Confirm the deposit set for your account and whether the cooperative will take a bond before one is issued.
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How to Apply for an Utility Deposit Bond:
- Ask Coweta-Fayette EMC whether a deposit waiver is available based on prior utility payment history.
- Get the deposit amount assigned to the account.
- Confirm the cooperative will accept a surety bond and ask for its bond form, if any.
- Apply for the bond in the exact legal name on the electric account.
- Pay the premium and deliver the executed bond to the cooperative.
- Pay the $25 membership fee.
Detailed Information About the Georgia Utility Deposit Bond:
Ask about a waiver first
Many applicants post a deposit they could have avoided. Coweta-Fayette EMC's FAQ says applicants with a good payment history at another utility can ask customer service about waiving the deposit. Have a record of that payment history ready when you apply.
What the cooperative charges
The published application fees are a $25 membership fee and a $175 deposit, and the FAQ notes these fees can be applied to the first bill. That figure reflects a standard account. Larger commercial and industrial loads are where a bond is most useful, but the cooperative's public pages do not publish a commercial deposit formula.
How the bond works
The member is the principal, Coweta-Fayette EMC is the obligee, and the surety guarantees the cooperative up to the bond amount if the member leaves electric bills unpaid. The bond replaces the cash deposit. It does not pay the monthly bill, and the member must reimburse the surety for any claim it pays.
The cooperative's public pages do not say whether it accepts a surety bond in place of cash or whether it uses its own form. Ask for the deposit amount assigned to your account and the cooperative's bond requirements before ordering.
Premium
The surety sets premium based on the bond amount and the applicant's credit and financial strength. The cooperative does not publish a rate.
Eligibility and Requirements for a Georgia Utility Deposit Bond:
- Coweta-Fayette Electric Membership Corporation named as obligee.
- Bond amount equal to the deposit the cooperative requires.
- Principal name matching the service account exactly.
- Credit review of the business and its owners by the surety.
- Bond kept in force for as long as the cooperative requires a deposit.
Georgia Utility Deposit Bond FAQs:
The cooperative's FAQ lists a $175 deposit and a $25 membership fee when applying for service. Commercial accounts may be assigned a different amount, so ask for the figure on your account.
The FAQ says applicants with a good payment history at another utility can ask customer service advisors about waiving it.
Its public pages do not say. Confirm with Coweta-Fayette EMC before ordering, and ask whether it requires its own bond form.
Unpaid electric bills owed to the cooperative, up to the bond amount. Any claim the surety pays must be repaid by the member.
