A. Within fifteen (15) days after the award of the franchise, the grantee shall deposit with the village either an irrevocable letter of credit from a financial institution or a security deposit in the amount of seven thousand five hundred dollars ($7,500.00), or three dollars ($3.00) per basic subscriber in the village, whichever is greater, with the form to be established by the village. The form and content of such letter of credit or security deposit shall be approved by the village attorney. These instruments shall be used to ensure the faithful performance of the grantee of all provisions of this chapter, and to ensure compliance with all orders, permits and directions of any agency, commission, board, department, division, or office of the village having jurisdiction over its acts or defaults under this chapter, and to ensure the payment by the grantee of any claims, liens, and taxes due the village which arise by reason of the construction, operation or maintenance of the system.
B. The letter of credit or security deposit shall be maintained at the amount established above or as otherwise specified in a franchise agreement.
C. If the grantee fails to pay to the village any compensation within the time fixed herein; or fails after thirty (30) days' notice to pay to the village any taxes due and unpaid; or fails to repay the village within thirty (30) days, any damages, costs or expenses which the village is compelled to pay by reason of any act or default of the grantee in connection with the franchise, or fails, after three (3) days' notice of such failure by the village to comply with any provision of the franchise which the village reasonably determines can be remedied by demand on the letter of credit or security deposit, the village may immediately demand payment of the amount thereof, with interest and any penalties, from the letter of credit or security deposit. Upon such demand for payment, the village shall notify the grantee of the amount and date thereof.
D. The rights reserved to the village with respect to the letter of credit are in addition to all other rights of the village, whether reserved by the 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 village may have.
E. The letter of credit shall contain the following endorsement:
It is hereby understood and agreed that this letter of credit or security deposit may not be canceled by the surety nor the intention not to renew be stated by the surety until thirty (30) days after receipt by the Village, by registered mail, of a written notice of such intention to cancel or not to renew.
F. Upon receipt of the thirty (30) day notice, this shall be construed as a default granting the village the right to demand payment from the bank for either the security deposit or letter of credit.
G. The village, at any time during the term of this chapter, may waive in writing grantee's requirement to maintain a letter of credit or security deposit or may lessen the amount. The waiver of the requirement can be initiated by the village or grantee. (Ord. 1021, 8-12-1998)