Utility Surety Bond
Unlike most bonds, this bond is not required in order to obtain licenses. In the state of Missouri, the Utility Surety Bond is accepted as a cash deposit for public utility services. This bond guarantees that the customer will pay for utility services fully and timely. The bond will be calculated by the percentage of power that is used each month.
Fundamentally, a utility deposit bond is a financial guarantee where the local utility is the obligee and guarantees that the utility bill will be paid per the terms of the service agreement. It is normally required in cases of a new business or new property ownership or if the person or entity has had a history of late payment. To qualify for this particular bond the principal must have excellent credit and a good financial wherewithal. While some companies have a rate as low as 2% the premium normally carries a 5% rate.
The surety company will payout if you are found at fault for a claim on your bond. This bond is carefully underwritten. The bond will require a credit check and may require financial statements depending on the size of the bond. The bond will carry a rate of 1% to 15% depending on the financial wherewithal of the applicant. Completion of the online application is a good starting point.
Link to Missouri Housing & Utilities: