Utility Bond Requirements Checklist

Use the checklist in the right order

A utility deposit bond starts with an account-specific security requirement, not a generic application. This checklist helps a business collect information, but it cannot determine eligibility. The utility controls whether it will accept a bond and specifies the amount, form, issuer criteria, term, and filing method. The surety separately decides whether it will underwrite and issue the bond. Neither decision is guaranteed.

Utility requirement

Obtain these items directly from the utility's authorized commercial credit contact:

• [ ] Written notice showing that account security is required.
• [ ] Confirmation that a surety bond is an acceptable option for this account and customer class.
• [ ] Exact required amount and the date through which that amount is valid.
• [ ] Current utility bond form, tariff sheet, or mandatory wording.
• [ ] Utility's full legal name and notice address.
• [ ] Customer account number and each covered service location.
• [ ] Required effective date, initial term, and continuation or renewal rules.
• [ ] Cancellation or nonrenewal notice period and delivery recipient.
• [ ] Acceptable surety licensing, authorization, or financial-strength criteria.
• [ ] Signature, seal, notarization, power-of-attorney, and filing instructions.
• [ ] Utility deadline and contact for questions.

Ask how an account change, higher usage, late payment, or service closure can affect security. Preserve the representative's written response. Published requirements may change, so do not rely solely on a form retained from another account.

Principal identity

The bond must ordinarily use the customer name associated with the utility obligation:

• [ ] Exact legal entity name, including suffix.
• [ ] Entity type and jurisdiction of formation.
• [ ] Physical and mailing addresses.
• [ ] Tax identification and relevant registration details requested by the application.
• [ ] Trade names, with the legal principal still clearly identified.
• [ ] Ownership list and authorized signers.
• [ ] Parent, subsidiary, or affiliate relationships relevant to service or indemnity.

Resolve mismatches before issuance. A trade name, property owner, tenant, or management company may not be the utility's actual customer. Only the utility can confirm the principal it requires.

Underwriting package

The scope depends on bond size and risk, but a surety may request:

• [ ] Completed, signed application and authorizations.
• [ ] Recent fiscal-year financial statements.
• [ ] Current interim balance sheet and income statement.
• [ ] Supporting schedules for debt, cash, receivables, and contingent obligations.
• [ ] Bank information and relevant credit history.
• [ ] Business history and explanation of significant financial changes.
• [ ] Prior utility payment experience or current billing information.
• [ ] Expected usage or load information provided by the utility.
• [ ] Indemnity information for the business, owners, or affiliates.
• [ ] Any additional records specifically requested by the underwriter.

Submit accurate records without hiding adverse information. The underwriter may need clarification or newer documents. For context, read utility bond underwriting.

Pre-issuance form review

Before signatures are added, compare the draft to the utility's requirement:

• [ ] Principal and obligee names are exact.
• [ ] Amount matches the current notice.
• [ ] Bond form edition and all mandatory clauses match.
• [ ] Account numbers and service locations are correct.
• [ ] Effective date, term, and cancellation language are correct.
• [ ] Governing-law, claim, and aggregate-liability language is acceptable.
• [ ] Rider or amendment requirements are understood.
• [ ] Surety details meet utility criteria.

Never edit an issued bond yourself. Send corrections through the issuing surety. The utility bond forms guide explains why each field matters.

Delivery and acceptance

• [ ] Principal and surety signatures are complete.
• [ ] Seal, acknowledgment, and power of attorney are included if required.
• [ ] Original or electronic bond is delivered by the prescribed method.
• [ ] Delivery record and complete copy are retained.
• [ ] Utility gives written receipt and acceptance.
• [ ] Utility confirms whether any separate deposit balance remains.

Receipt alone may not mean acceptance. Do not treat the requirement as complete until the utility confirms it.

Ongoing administration

• [ ] Record renewal and notice dates.
• [ ] Pay utility bills according to account terms.
• [ ] Route utility and surety notices to responsible staff.
• [ ] Report legal-name, ownership, address, or account changes.
• [ ] Respond to security increase or replacement requests.
• [ ] Obtain release instructions when service ends or security is no longer required.
• [ ] Retain release, cancellation, and claim records.

Use how to get a utility deposit bond for the full sequence. Explore bonds, states, and other resources for additional orientation. This checklist is educational and does not replace utility instructions or legal, accounting, or financial advice.