NC Union Power utility deposit bonds.
2% of the bond amount. $100 minimum.
Union Electric Membership Corporation, doing business as Union Power Cooperative, can accept an irrevocable letter of credit or surety bond from a commercial member in lieu of a cash security deposit, under the Cooperative's Service Rules and Regulations § 102. The standard commercial deposit is two times the estimated monthly bill for the service location; the bond is written in that same amount. Premiums cost 2% of the bond amount, $100 minimum, and the application collects no credit information.
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Apply to filed in one sitting.
A utility deposit bond is one of the simplest bonds to issue. Enter the amount Union Power quoted, submit the application, and send the cooperative the bond. Here is the whole thing:
Apply online
Your business details, the service address, the deposit amount Union Power quoted, and the effective date — that is the entire application.
Issued
The application collects no credit information, and most applications approve quickly. If a check ever runs, it is a soft pull that will not touch your score. Pricing is 2% of the bond amount, $100 minimum.
File with Union Power
Your executed bond arrives by email, ready to submit to Union Power in place of a cash security deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the utility deposit bond actually guarantees
Union Electric Membership Corporation, d/b/a Union Power Cooperative, is a member-owned electric distribution cooperative headquartered in Monroe, N.C., serving more than 80,000 member accounts across Union, Stanly, Cabarrus, Mecklenburg, and Rowan counties. Under the Cooperative's Service Rules and Regulations § 102 (Security Deposit), a new or existing member may be required to post a deposit sized to the risk of the account — for a commercial account, the standard figure is two times the estimated monthly bill for the service location.
Rather than tie up that amount in cash, § 102's waiver provision lets a commercial member instead provide the Cooperative with an irrevocable letter of credit or a surety bond from a qualified institution, in an amount equal to the security deposit required. This bond is that instrument: it is a three-party arrangement between you (the principal), the surety carrier, and Union Power (the obligee). If the account falls delinquent and the Cooperative is left with an unpaid balance, Union Power can claim against the bond up to its face amount — and if the surety pays, you repay the surety. It is a payment guarantee for the co-op's membership, not insurance for you.
A residential-account deposit is generally waived for a Member in Good Standing, a member with a satisfactory credit-reporting-agency score, or one with a guarantee of payment from another Member in Good Standing — those members typically do not need this bond. Commercial deposits, by contrast, are retained for the life of the account rather than automatically refunded after twelve months. Confirm the exact deposit figure Union Power quoted before applying; we price the bond from a $100 minimum, and the application collects no credit information.
You need this bond if you are
One application, then a quick review.
Submit the application with the deposit amount Union Power quoted. The application collects no credit information, and most applications clear quickly.
Start the application →Common questions.
Other North Carolina bonds.
Skip the cash deposit, keep your service on.
Premiums from $100. Enter the amount Union Power quoted and send them the bond the same day.