(A) In accordance with the timing set forth in § 121.22(B), the Grantee shall deposit with the city a letter of credit from a financial institution in the amount of $50,000. The form and content of the letter of credit shall be reasonably approved by the City Attorney. The letter of credit shall be used to insure the faithful performance by the Grantee of all provisions of this franchise; and compliance with all orders, permits, and directions of any agency, commission, board, department, division, or office of the city having jurisdiction over its acts or defaults under this franchise; and the payment by the Grantee of any claims, liens, and taxes due the city which arise by reason of the construction, operation or maintenance of the system.
(B) The letter of credit shall be maintained at $50,000 during the entire term of this franchise, even if amounts have to be withdrawn pursuant to divisions (A) or (C) of this section
(C) If the Grantee fails to pay to the city any compensation within the time fixed herein, or fails, after ten days’ notice, to pay to the city any taxes due and unpaid, or fails to repay the city, within ten days, any damages, costs, or expenses which the city is compelled to pay by reason of any act or default of the Grantee in connection with this franchise, or fails, after three days’ notice of failure by the city to comply with any provision of this franchise which the city reasonably determines can be remedied by demand on the letter of credit, the city may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon request for payment, the city shall notify the Grantee of the amount and date thereof.
(D) The rights reserved to the city with respect to the letter of credit are in addition to all other rights of the city, whether reserved by this franchise or authorized by law, and no action, proceeding, or exercise of a right with respect to the letter of credit shall affect any other right the city may have.
(E) The letter of credit shall contain the following endorsement.
It is hereby understood and agreed that this letter of credit may not be canceled by the surety, nor the intention not to renew be stated by the surety until 60 days after receipt by the city, by registered mail, of written notice of intention to cancel or not to renew.
(‘83 Code, § 123.13) (Ord. 82-036, passed 6-21-82; Am. Ord. 96-003, passed 4-1-96) Penalty, see § 121.99