1. (a) Requirements.

   1. (1) Residential customers.

      1. (A) Instead of a deposit, a utility shall accept the written guaranty of a qualified third party to pay an amount equal to the deposit.
      2. (B) If a third party is a residential customer of the utility and meets the following conditions, he or she is qualified to act as a guarantor on one (1) residential account:

2. (i) The customer presently has no deposit on file on his or her own account;

   1. (ii) The customer has had service for at least twelve (12) months;

      1. (iii) The customer has not paid late more than two (2) times in the last twelve (12) months; and

         1. (iv) The customer has not had service suspended for failure to pay in the last twelve (12) months.
   2. (2) Nonresidential customers. Instead of a deposit, a utility may accept the written guaranty of another customer to pay an amount equal to the deposit.
   3. (3) Residential and nonresidential customers. The utility may allow a customer to guarantee more than one (1) account.

3. (b) Liability.

   1. (1) The liability of a guarantor shall be limited to:

      1. (A) The amount required for a deposit when the guaranty was made; or
      2. (B) A revised amount allowed by 23 CAR § 455-402 and agreed to by the guarantor.

   2. (2) The guaranty shall end when:

      1. (A) A deposit would be refunded as outlined in 23 CAR § 455-406; or
      2. (B) When the guarantor’s account is closed.

   3. (3)

      1. (A) The utility shall provide the guarantor a copy of the Guaranty Agreement Form which:

         1. (i) Clearly states the amount of the guarantor’s liability; and
         2. (ii) Has been signed by the guarantor and the utility.

      2. (B) The guarantor’s agreement shall be in the form set out in subsection (d) of this section.

         1. (c) Collection. A utility may collect the guaranteed amount on the guarantor’s account as if it were a charge for service.
         2. (d) Guaranty Agreement Form. A guaranty agreement shall be in the following form and must be signed by the guarantor and the utility representative: GUARANTY AGREEMENT In consideration of _____ (utility) providing service to the below named person(s), I agree to be liable for an amount not to exceed $_____ in lieu of a deposit for the following person(s): NAME: _____________________________ ________________________________________________ ADDRESS: _____________________________ ___________________________________________________ ACCOUNT #: _____________________________ _____________________________________________________ I also understand that _____ (utility) may transfer up to the above amount to my active account if the above named person does not pay all of the final bill after the account has been closed. I understand I will be responsible for the lesser of the deposit or the amount the above- named person actually owes _____ (utility). This guaranty will transfer to my account (at other locations) should I change my service address. The guaranty on a residential account shall expire under the same conditions as would result in the refund of a deposit. I understand that utilities are not required to refund deposits on business or commercial accounts until the account is closed. I understand that I cannot terminate this guaranty before that time unless my account is closed. The amount of the guaranty is limited to the amount required for a deposit when the guaranty is made. Signed: ____________________ Signed: _______________________ Utility Representative Guarantor Date: ________________ Name: _____________________ Address: ___________________ Account #: _________________ Date: _____________________ Witness: __________________

Codification Notes: This section was promulgated as Rule 4.04 of the General Service Rules prior to codification in the Code of Arkansas Rules.