OAR 860-036-1230
Surety Agreements
(1)
A water utility must inform any residential applicant or customer who is required to pay a deposit of the opportunity to provide a written surety agreement in lieu of paying the deposit. A surety agreement obligates another qualifying residential customer of the same water utility to pay an amount up to the required deposit if the secured account is later disconnected and a balance remains owing following the due date for the closing charges. To qualify as a surety, the other residential customer must have had 12 months of continuous service with the water utility without a late payment.(2)
If the deposit is required of an applicant under OAR 860-036-1220 (Deposits for Residential Service)(2), the water utility may require the signed surety agreement prior to service being provided.(3)
If the deposit is required of a customer under OAR 860-036-1220 (Deposits for Residential Service)(3), the water utility may require a signed surety agreement within seven calendar days. A customer’s failure to timely provide a surety agreement is grounds for disconnection under OAR 860-036-1500 (Grounds for Involuntary Disconnection).(4)
If the secured account is disconnected and a balance remains following the due date for closing charges, the water utility may bill the surety for amounts up to the surety agreement amount. The water utility may apply any payment received from the surety first to the amount due under the surety agreement. The water utility may disconnect the surety’s service for non-payment of the surety agreement amount after providing notice to the surety under OAR 860-036-1510 (Required Notices for Involuntary Disconnection).(5)
The surety may terminate the surety agreement after 12 months upon seven calendar days’ advance written notice to the water utility.(6)
A water utility may terminate a surety agreement at any time upon seven calendar days’ notice to both the surety and the secured customer if the surety no longer meets the qualifications under section (1) of this rule.(7)
In the event a surety agreement is terminated under section (5) or (6) of this rule, the water utility will provide notice of the termination of the surety agreement to the customer. The water utility may require the customer, within seven calendar days, to pay the required deposit amount, enter into a deposit payment arrangement, or obtain a written surety agreement from another qualifying customer.(8)
The surety agreement automatically terminates when:(a)
The secured account is closed and paid in full;(b)
The secured account is closed and the surety pays the full amount secured by the surety agreement; or(c)
The customer with the secured account establishes credit under OAR 860-036-1260 (Refund of Deposits)(2) or pays a deposit under OAR 860-036-1220 (Deposits for Residential Service).
Source:
Rule 860-036-1230 — Surety Agreements, https://secure.sos.state.or.us/oard/view.action?ruleNumber=860-036-1230.