Fayetteville Public Utilities deposit bonds.
From $100.
Fayetteville Public Utilities (FPU) in Tennessee requires general-service (commercial/industrial) accounts to post a security deposit of two average monthly utility bills, and FPU's policy names a utility payment bond among the accepted alternatives to cash. Pricing is 2% of the bond amount, $100 minimum.
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How much does a Fayetteville Public Utilities deposit bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No long underwriting queue for the standard utility deposit bond — enter your amount, pay, and deliver to FPU. Here is the whole thing:
Apply online
Your business details, the deposit amount Fayetteville Public Utilities set for your account, and the effective date — that is the application.
Issued on the spot
No credit check up to $15,000, and most applicants issue instantly. Above $15,000, a soft pull may add a short review.
Deliver to Fayetteville Public Utilities
Submit the executed bond to FPU to satisfy the deposit requirement on your electric, gas, or water account. Wet-ink originals mailed on request.
What it is and who needs it.
What the utility deposit bond actually does
Fayetteville Public Utilities provides electric, gas, and water service to Fayetteville, Tennessee and Lincoln County. Under its Security Deposit Policy, residential accounts post a cash deposit (adjusted for credit risk), while a general-service (commercial/industrial) account posts a deposit equal to two average monthly utility bills — and FPU's policy accepts alternatives to cash, including "cash, assignments on a CD or savings account, irrevocable letter of credit from an approved financial institution, or a utility payment bond."
The bond is a guarantee to FPU that your utility charges will be paid. If a general-service account goes unpaid and is closed with a balance owed, FPU can recover against the bond up to the deposit amount, rather than against cash it would otherwise hold. Using a bond instead of cash frees up working capital for the business.
It is not insurance for you — if the surety pays FPU on a claim, you repay the surety. Enter the deposit figure FPU set for your account and your exact price appears at the application, from a $100 minimum, with no credit check up to $15,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
Deliver to Fayetteville Public Utilities. Submit the executed bond to FPU to satisfy the deposit requirement on your electric, gas, or water account. Wet-ink originals mailed on request.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $15,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the deposit amount FPU set — the executed bond is generated instantly, ready to deliver.
Start the application →Common questions.
Other Tennessee bonds.
Price and requirements checked on the carrier’s application, . Page updated .
FPU deposit bond, issued today.
Pricing from $100. Enter the deposit FPU set and deliver it the same day.