(A) Within 30 days after the effective date of franchises between a franchisee and each of the Cablecasting Board’s member communities, a franchisee shall deposit with the Cablecasting Board and maintain on deposit through the term of the franchise the sum of $10,000. The sum shall stand as security for the obligations of a franchisee to the member communities of the Cablecasting Board and be administered by the Cablecasting Board as set forth below:
(1) The faithful performance by it of all the provisions of this chapter and the franchise;
(2) Compliance with all orders, permits and directions of any agency, Council, board or department of the member communities having jurisdiction over its acts or defaults under the franchise agreements; and
(3) The payment by the franchisee of any claims, liens and taxes due the member communities which arise by reason of the construction, operation or maintenance of the system.
(B) Within ten days after notice to it that any amount has been withdrawn from the security fund, the franchisee shall pay to or deposit with the Cablecasting Board a sum of money in the full amount withdrawn.
(C) If the franchisee fails to pay to the member communities any fees within the time fixed in this chapter; or fails, after ten-days' written notice, to pay to the member communities any taxes due and unpaid; or fails to repay the member communities within such ten days, any damages, costs or expenses which the member communities shall be compelled to pay by reason of any act or default of the franchisee in connection with the franchise or fails after three days notice of such failure to comply with any provisions of the franchise which the member communities reasonably determines can be remedied by a withdrawal from the security, the member communities may immediately withdraw the amount thereof, with interest and any penalties, or liquidated damages from the security fund. Upon such withdrawal, the member communities shall notify the franchisee of the amount and date thereof.
(D) The security fund deposited pursuant to this section, including all interest thereon, shall become the property of the member communities if the franchise is rescinded or revoked by reason of the default of the franchisee. The franchisee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit at the expiration of the term of the franchise, provided that there is then no outstanding default on the part of the franchisee. Interest earned by the investment of the security fund shall become part of the security fund and unless consumed by the payment of penalties, fees or other charges under this chapter shall be returned to the franchisee at the expiration of the franchise term, provided that there is then no outstanding default on the part of the franchisee.
(E) The payment of a penalty from the security shall not constitute a cure of any violation or any act of noncompliance. The rights reserved to the member communities with respect to the security fund are in addition to all other rights of the member communities whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the member communities may have.
(Ord. passed - -)