Under certain conditions, a deposit may be required from new applicants to guarantee payment for the service. If required, the deposit may be paid in 2 equal installments, 1 prior to receiving service and the other with the first bill. In place of a deposit, the Cooperative will accept the written guaranty of a qualified third party who is a residential member of the Cooperative or an acceptable Letter of Credit for at least the most previous 12-month period from the applicant's last electric supplier.
The amount of a deposit will not exceed 2 average bills. (A deposit for a landlord may not exceed the estimated bill for 3 average billing periods.) The Cooperative shall pay simple interest on deposits at a rate set annually by the Arkansas Public Service Commission, and shall be credited to the member's account annually.
For existing members, a deposit may be required (or increased) if any of the following conditions have occurred during the preceding 12 months:
- Service is suspended for failure to pay.
- The member failed to pay a bill before the close of business on the shut-off date within the last 12 months;
- The member gave the utility 2 or more checks, which were returned unpaid for reasons other than bank error in the last 12 months;
- The member did not pay bills by the close of business on the due date 2 times in a row or any 3 times in the last 12 months;
- During the last 24 months, the member misrepresented his identity or other facts relevant to the conditions under which the member obtained or continued Cooperative service;
- The member used the service without authorization, tampered with Cooperative equipment, or inflicted damage to Cooperative equipment during the last 2 years;
- The member used more services than the estimate on which the Cooperative based the deposit. The Cooperative may not charge any additional deposit under this section after the first 12 months of service unless the member moves the service to a new location or expands the business or scope of operation at the original location.
- In accordance with the United States Bankruptcy Code, U.S.C.A. Title 11 S 366, the Cooperative may require a member to furnish adequate assurance of payment in the form of a deposit or other security. This deposit may be in addition to all other deposits posted with the Cooperative before bankruptcy filing.
When the Cooperative charges a new or additional deposit, the total amount on deposit at any time shall not be more than the total of the member's 2 highest bills during the last 12 months.
When final discontinuation of service is made by the Cooperative, the amount of the deposit, plus accrued interest, will be credited to the member's account. A deposit shall automatically be refunded when a member has, for 12 consecutive months, paid all bills prior to the due date or has rendered no more than 1 check that was dishonored for reasons other than bank error.
All deposits will be in addition to the normal membership requirement of the Cooperative.