A. 1. Within thirty (30) days after the effective date of the franchise, the Grantee shall deposit into a bank account, established by the Grantor and maintain on deposit through the term of this franchise, the sum specified in the Franchise Agreement, as security for the faithful performance by it of all the provisions of the franchise, and compliance with all orders, permits and directions of any agency of the Grantor having jurisdiction over its acts or defaults under this Chapter, and the payment by the Grantee of any claims, liens and taxes due the Grantor which arise by reason of the construction, operation or maintenance of the system.
2. Subject to the provisions of Subsections D. below, the security fund may be assessed by the Grantor for purposes including, but not limited to, the following:
a. Failure of the Grantee to pay the Grantor sums due under the terms of the franchise.
b. Reimbursement of costs borne by the Grantor to correct franchise violations not corrected by the Grantee, after due notice.
c. Monetary remedies or damages assessed against the Grantee due to default or violation of franchise requirements.
B. At the Grantor's sole opinion, all or some portion of the security may be provided in the acceptable form of an irrevocable letter of credit, in lieu of a cash deposit.
C. Within thirty (30) days after notice to it that any amount has been withdrawn by the Grantor from the security pursuant to Subsection A. above, the Grantee shall deposit a sum of money sufficient to restore such security fund to the amount required by the Franchise Agreement.
D. If the Grantee fails, after thirty (30) days written notice to pay to the Grantor any franchise fee or taxes due and unpaid; or, fails to pay to the Grantor within such thirty (30) days, any damages, costs or expenses which the Grantor shall be compelled to pay by reason of any act or default of the Grantee in connection with the franchise; or fails, after thirty (30) days notice of such failure, to comply with any material provision of the franchise which the Grantor reasonably determines can be remedied by an expenditure of the security, the Grantor may thereafter withdraw the amount thereof, with interest and any penalties, from the security. Upon such withdrawal, the Grantor shall notify the Grantee of the amount and date thereof.
E. The security fund deposited pursuant to this Subchapter shall become the property of the Grantor in the event the franchise is revoked for cause by reason of the default of the Grantee in accordance with the procedures of § 11.21.165 of this Chapter. The Grantee, however, shall be entitled to the return of such security, or portion thereof, as remains on deposit no later than ninety (90) days after the expiration of the term of the franchise; provided that, there is then no outstanding default on the part of the Grantee. The Grantee shall be entitled to any interest accrued on the cash portion of the security fund.
F. The rights reserved to the Grantor with respect to the security fund are in addition to all other rights of the Grantor 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 constitute an election of remedies or a waiver of any other right the Grantor may have.
('65 Code, § 35B-5(c)) (Ord. No. 87-021 § 1; Ord. No. 2001-009 § 1)