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Asa <br /> 3) Q. What is an acceptable security for the bond? <br /> A. The Commission Rules R7-37(e) and R10-24(e) presently provide that <br /> acceptable securities are: <br /> (1) Obligations of the United States of America <br /> (2) Obligations of the State of North Carolina <br /> (3) Certificates of deposit drawn on and accepted. by commercial <br /> banks incorporated in the State of North Carolina <br /> (4) Such other evidence of financial responsibility deemed <br /> acceptable to the Commission. <br /> In response to positions taken by the Public Staff and the Attorney <br /> General , the Commission has issued an Order proposing to amend number <br /> (4) to read as follows: <br /> "(4) Such other evidence of financial responsibility deemed <br /> acceptable to the Commission. If the utility proposes to post <br /> evidence of financial responsibility other than that permitted in <br /> (1), (2), and (3) above, a hearing will be held to determine if the <br /> form of the proposed security serves the public interest and if the <br /> amount of the bond proposed by the utility should be higher due to <br /> its lack of liquidity. At this hearing the burden of proof will be <br /> on the utility, to show that the proposed security under subparagraph <br /> (4) and the proposed amount of the bond will be in the public <br /> interest." <br /> This amendment will become effective within 30 days after the date of <br /> this Notice unless written opposition to the proposed amendment is <br /> filed with the Commission. A copy of the Commission's Order <br /> proposing the amendment to (4) is included in this mailing to you. <br /> The Commission has also proposed an amendment to number (3) to allow <br /> certificates of deposit drawn on savings and loan associations. <br /> 4) Q. How may a certificate of deposit be posted as security? <br /> A. The deposit may be a certificate of deposit with any bank or savings <br /> and loan association. <br /> United Carolina Bank (UCB) is the custodian for the Utilities <br /> Commission. <br /> All instruments, whether or not it is a certificate of deposit, will <br /> be held by United Carolina Bank as the custodial agent of the <br /> Commission. Unless the security is a certificate of deposit with <br /> UCB, the minimum annual handling fee will be 6115 to be paid by the <br /> utility company. The name, address and telephone number of the <br /> person to contact at UCB is as follows: <br /> United Carolina Bank Trust Group <br /> ATTENTION: Ginger Carter Floars <br /> 3605 Glenwood Avenue <br /> Raleigh, North Carolina 27612 <br /> Telphone: (919)782-7100 ext. 270 <br /> 2 - <br />