Common use of Initial Security Deposit Clause in Contracts

Initial Security Deposit. Customers unable to demonstrate satisfactory credit may be required to post a deposit or other collateral to receive Services. Estimated xxxxxxxx for an initial deposit from an applicant may be based upon reasonable estimate of average usage for the applicant’s customer class or may be based on the Customer’s estimation of anticipated usage or the actual historical usage associated with the Customer’s ESI ID. The amount of deposit will not exceed the greater of either the sum of Customer’s estimated xxxxxxxx for the next two (2) billing cycles or one-fifth (1/5th) of Customer’s estimated annual billing. Company will not require an initial or additional deposit from an existing Customer unless that Customer, during the previous twelve (12) billing cycles of service, has received a disconnection notice, or has had service terminated for nonpayment or if estimated bills are more than twice the average of the bills over the last 12 months. If an initial or additional deposit is required, Company will send notice and require the Customer to pay the deposit within ten (10) days after the issuance of written notice, and a disconnection notice may be combined with or issued concurrently with the request for deposit.