1. (a) Requirements.

   1. (1) Residential customers.

      1. (A) Instead of a deposit, an LEC 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 LEC 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, an LEC may accept the written guaranty of another customer to pay an amount equal to the deposit.
   3. (3) Residential and nonresidential customers. The LEC 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:

         1. (i) Allowed by 23 CAR § 466-402; and
         2. (ii) Agreed to by the guarantor.

   2. (2) The guaranty shall end when:

      1. (A) A deposit would be refunded as outlined in 23 CAR § 466-405; or
      2. (B) The guarantor’s account is closed.

   3. (3)

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

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

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

         1. (c) Collection. An LEC 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 LEC’s representative: GUARANTY AGREEMENT In consideration of _____ (local exchange carrier) 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 ____ (local exchange carrier) 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 ____ (local exchange carrier). 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 local exchange carriers 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:_________________________ Local Exchange Carrier Representative Guarantor Date: _______________________ Name: ______________________ Address: ____________________ Account #: __________________ Date: _______________________ Witness: ____________________

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