(a) Generally. Within 30 days after the effective date of the franchise, the franchisee shall deposit into a bank account established by the County, and maintain on deposit throughout the term of the franchise, the sum specified in the franchise agreement as security for the franchisee's:
(1) faithful performance of all of the provisions of the franchise and compliance with all orders, permits, and directions of any agency of the County having jurisdiction over its acts or defaults under this article or any other provision of this Code; and
(2) payment of any claims, liens, and taxes due to the County that arise by reason of the construction, operation, or maintenance of the cable system.
(b) Irrevocable letter of credit in lieu of cash deposit. The County may permit a franchisee to provide some or all of the security fund in the form of an irrevocable letter of credit in lieu of a cash deposit.
(c) Assessment from fund. Subject to the provisions of subsection (d), the security fund may be assessed by the County for:
(1) failure of the franchisee to pay the County sums due under the provisions of the franchise agreement and this article;
(2) reimbursement of costs borne by the County to correct franchise violations not corrected by the franchisee after notice and the opportunity to cure as provided under § 10-11-101; and
(3) monetary remedies, penalties, or damages assessed against the franchisee due to franchise violations.
(d) Withdrawal of funds. The County may withdraw the amount due, with interest and any penalties, from the security fund if after 30 days written notice the franchisee fails to:
(1) pay to the County any franchise fee or taxes due;
(2) pay to the County any damages, costs, or expenses that the County is compelled to pay by reason of any act or default of the franchisee in connection with the franchise; or
(3) comply with any material provision of the franchise that the County determines can be remedied by an expenditure of the security fund.
(e) Notification of withdrawal. On any withdrawal from the security fund, the County shall notify the franchisee of the amount and date of withdrawal.
(f) Restoration of withdrawn funds. Within 30 days after notice to the franchisee that any amount has been withdrawn by the County from the security fund under this section, the franchisee shall deposit a sum of money sufficient to restore the security fund to the amount required by the franchise agreement, or, if applicable, replace the letter of credit.
(g) Disposition upon franchise revocation. If the franchise is revoked for cause by reason of the default of the franchisee under § 10-11-103, the security fund deposited under this section shall become the property of the County.
(h) Return of funds. If there is no outstanding default by the franchisee at the end of 90 days after the expiration of the term of the franchise, the franchisee is entitled to the return of all or any part of the security fund that remains on deposit and to any accrued interest.
(i) County rights reserved. The rights reserved to the County with respect to the security fund are in addition to all other rights of the County, whether reserved by this article or authorized by law. Any action, proceeding, or exercise of a right with respect to the security fund does not constitute an election of remedies or a waiver of any other right the County may have.
(Bill No. 54-06)