(a) Form of security. Unless exempted herein, all customers shall be required to make a deposit in one of the following forms:
(1) Cash;
(2) Guarantee bond in a form and from a surety company acceptable to the director of the water department;
(3) Letter of credit drawn on a state or federally chartered lending institution located in Tarrant County, Texas; provided however, that in the event the letter of credit is not renewed at least 15 days prior to the date of expiration, the letter of credit may be drawn upon and the funds so received shall become a cash deposit; and
(4) Assignment to the City of Fort Worth of certificate of deposit in a state or federally chartered lending institution located in Tarrant County, Texas.
(b) Amount. The director of the water department or his or her duly authorized representative shall establish the amount of a security deposit which will be sufficient to insure the city against loss due to nonpayment of final bill.
(c) Failure to provide security. The director of the water department or his or her duly authorized representative may refuse or discontinue service to any person, firm or corporation who fails to make a required security deposit or fails to increase the amount of the security deposit after having been notified that an increase is required.
(d) Hardship cases. In cases of extreme hardship the director of the water department or his or her duly authorized representative may allow single-family residential service customers to make cash deposits in installments.
(e) Exemptions from security deposit requirement. A person is not required to post a security deposit provided he or she has a satisfactory credit history with the water department as determined by the director or his or her duly authorized representative.
(f) Withdrawal of exemption. If a customer establishes an account without a security deposit, but subsequently loses his or her satisfactory credit history with the department, a security deposit may be required as a condition for continued service.
(g) Exceptions to section. This section does not apply to governmental entities or to wholesale service contracts.
(1964 Code, § 37-30) (Ord. 9937, § 1, passed 8-25-1987; Ord. 11922, § 2, passed 4-18-1995; Ord. 23990-12-2019, § 3, passed 12-17-2019, eff. 4-1-2020)
Cross-reference:
Security deposit refunds, see § 35-65