(A) Upon the effective date of the franchise agreement, at the village's discretion, a franchisee shall file with the village a performance bond, in favor of the village, in the sum of $250,000 or in any greater amount specified in the franchise agreement, conditioned that the franchisee shall well and truly observe, fulfill and perform each term and condition of this chapter and the franchise agreement. This bond shall be maintained by the franchisee throughout the construction period and until such time as determined by the Village Council. At the request of the Village Council, additional municipalities may be named as additional secured parties in such bond. In lieu of all or part of the amount of such performance bond, at the village's discretion, a franchisee shall file with the village an unconditional and irrevocable letter of credit, in form and content satisfactory to the village, in the sum specified in this section or in any greater amount specified in the franchise agreement. Failure to furnish such bond or letter of credit and to maintain the same in effect in the full amount required hereby during the entire term of the franchise agreement and any extension or renewal thereof shall constitute a violation of this section and a material breach of the franchise agreement.
(B) If a franchisee fails to comply with any law, ordinance or regulation governing the franchise, or fails to well and truly observe, fulfill and perform each term and condition of the franchise, including the franchisee's proposal, there shall be recoverable, jointly and severally, from the principal and surety of the bond and/or from the letter of credit any damages or loss suffered by the village as a result thereof, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of a franchisee, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the bond or letter of credit.
(C) The village may, upon completion of initial or subsequent construction, waive or reduce the requirement of the franchisee to maintain such bond or letter of credit. However, the village may require a performance bond or letter of credit to be posted by a franchisee for any construction subsequent to the completion of the initial service areas in a reasonable amount and upon such terms as determined by the Village Council.
(D) The bond or letter of credit shall contain the following or substantially similar endorsement: It is hereby understood and agreed that the bond or letter of credit may not be canceled nor the intention not to renew be stated until 30 days after receipt by the village, by registered mail, of a written notice of such intent to cancel or not to renew.
(Ord. passed - -)