(A) Within thirty (30) days after the grant and acceptance of this franchise, the grantee shall arrange for, and shall maintain throughout the term of this franchise, the standard irrevocable letter of credit provided by the grantee for the protection of the government, with a financial institution acceptable to the government. The letter of credit shall be in a face amount of not less than fifteen thousand dollars ($15,000.00). The letter of credit shall be used to ensure that the operation of the cable system continues in an orderly and uninterrupted manner in the event of a default by the grantee, and to indemnify the government from any loss or damage to any governmental property arising out of the construction, operation, or maintenance of the cable system by the grantee.
(B) The letter of credit shall be maintained at fifteen thousand dollars ($15,000.00) during the entire term of this franchise, even if amounts are withdrawn pursuant to subdivision (A) or (C) of this section. Upon the sale or transfer of the cable system serving the city, the letter of credit shall terminate and the proceeds thereof returned to the grantee. Any transferee shall comply with all the provisions of this section.
(C) If the grantee fails, after receipt of twenty-one (21) days written notice, to pay to the government any compensation due pursuant to this franchise, any taxes due and unpaid or any damages, costs or expenses which the government is compelled to pay by reason of any act or default by the grantee in connection with this franchise, the government may, after affording grantee all due process procedures pursuant to § 113.10(B), immediately request payment of the amount thereof from the letter of credit. Upon such request for payment, the government shall notify the grantee of the amount and date thereof.
(D) The rights reserved to the government with respect to the letter of credit are in addition to all other rights of the government, whether reserved by this franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the government may have.
(Ord. 1999-13, passed 11-8-99)