1. A. A LEC shall use the criteria in this subsection to determine whether to require a deposit or other guarantee of payment as a condition of new or continued service.

   (1) A LEC may require an existing customer to make a deposit if the customer’s payment record shows substantial nonpayment for intrastate services provided by the LEC in any two (2) of the last six (6) months, or any three (3) of the last twelve (12) months. A LEC may require a deposit even if such customer has paid part of the amount owed before the date service is to be discontinued for nonpayment.

   (2) A LEC may, without notice, require an existing customer to pay a deposit in full before service is restored whenever service has been disconnected for non‑payment of outstanding charges.

   (3) A LEC shall not require a deposit if the customer furnishes, to the LEC's satisfaction, a written guarantee from a third party to secure payment of the customer's bills for intrastate services provided by the LEC. A LEC shall not require the guarantee amount to exceed the maximum amount of the deposit that would otherwise have been required. The guarantee shall remain in effect until terminated in writing by the guarantor, or until the customer has achieved a satisfactory payment record for services for twelve (12) consecutive months. A LEC shall terminate the guarantee five (5) business days after receiving written notice from the guarantor or five (5) business days after a twelve (12) month period of satisfactory payment.

   (4) A LEC shall not require a deposit if the customer has been a customer of the LEC for a similar type of service within a preceding twelve (12) consecutive month period, and the customer's credit was satisfactory and is not otherwise impaired.

2. B. The commission may authorize a LEC to waive deposit requirements for low-income customers eligible for tariffed discount programs.
3. C. A carrier shall not require a deposit of a customer that exceeds three (3) times the average monthly bill for telecommunications services provided by that carrier for the same class of customers; wireless carriers may instead use three (3) times the monthly plan fee for wireless services for that customer. An estimate of monthly billing may be used for the purpose of determining a deposit if the carrier can reasonably demonstrate that the customer's usage may be substantially different than the average usage for the same class of service or the monthly plan fee.
4. D. A carrier may adjust the amount of deposit at the request of the customer or at the carrier's initiative at any time the character, purpose, or degree of the customer's use of the service has materially changed, or there are indications it will change.
5. E. A LEC may require a deposit in addition to any advance, contribution, or guarantee it may require in connection with the construction of lines or facilities, as provided in the line extension policy of the LEC's tariffs on file with the commission.
6. F. If a customer files a complaint regarding a proposed discontinuance of service, the commission may, upon motion by the carrier, require the customer to deposit cash or post bond with the carrier, in an amount deemed reasonable by the commission, pending resolution of the disputed proposed discontinuance.

[17.11.16.24 NMAC - Rp, 17.11.16.23 NMAC, 2-1-06]