(A) The franchisee shall, concurrently with its acceptance of this franchise, file with the Town Administrator/Town Clerk and, at all times thereafter, maintain in full force and effect for the term of the franchise or any renewal thereof, at the franchisee’s sole expense, a corporate surety bond in a responsible company licensed to do business in the state and approved by the town, in the amount of $10,000, renewable annually and conditioned upon the faithful performance of the franchisee and in accordance with the provisions of this chapter and upon the further condition that, in the event the franchisee shall fail to comply with any one or more of the provisions of the franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by the town as a result thereof, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the franchisee as prescribed hereby, plus a reasonable allowance for attorneys’ fees and costs, up to the full amount of the bond, the condition to be a continuing obligation for the duration of the franchise and any renewal thereof and thereafter until the franchisee has liquidated all of its obligations with the town that may have arisen from the acceptance of the franchise or renewal by the franchisee or from its exercise of any privileges or rights herein granted. The bond shall provide that at least 30 days’ prior written notice of intention not to renew, cancellation or material change be given to the town by filing the same with the Town Administrator/Town Clerk. Notwithstanding the above provisions of this section, the Board of Alderpersons may, in its sole discretion, waive the bond or reduce the required amount thereof after two years of operation of a system under the franchise by the franchisee, its successors or assigns, which, in the sole opinion of the Board of Alderpersons, has been satisfactory. Failure to keep a performance bond in force at all times as herein provided shall constitute an event of default.
(Prior Code, § 4.1-46)
(B) In lieu of the performance bond by a surety company as provided in § 110.144, the franchisee may file and deposit with the Town Administrator/Town Clerk a performance bond without a corporate surety but secured by a certificate of deposit in some bank or savings and loan association in the state, in the sum of $10,000, conditioned in the same manner as the performance bond of a surety company as described in § 110.144. The income from the deposit shall be payable to the franchisee. As an alternative, the franchisee may provide the other security as may be approved by the Board of Alderpersons, but absent the approval, it shall provide a bond or deposit in lieu thereof as above provided.
(Prior Code, § 4.1-47) (Ord. passed 9-19-1979)