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(a) The franchisee must post with the County, and maintain at all times during the term of the franchise, a cash security deposit in the amount specified in the franchise agreement. The County must hold the security deposit as security for:
(1) faithful performance of all applicable provisions of law and the franchise agreement;
(2) compliance with all orders, permits, and directions of the County; and
(3) payment by the franchisee of any claims, liens, or taxes due to the County because of the construction, operation or maintenance of the system.
(b) The County must place any security deposit in an interest bearing account such as those in which the County general funds are located. The interest will accrue to the benefit of the franchisee but may not be withdrawn. All interest is added to and becomes part of the original security deposit during the term of the franchise.
(c) The County may immediately withdraw an appropriate amount, including interest and penalties, from the security deposit if:
(1) after 10 days notice the franchisee fails to pay to the County any fees or taxes due and unpaid, liquidated damages, damages, or costs or expenses that the County is compelled to pay by reason of any act or default of the franchisee in connection with this franchise; or
(2) after 30 days notice to the franchisee, the franchisee fails to comply with any provision of the franchise that the County reasonably determines can be remedied by an expenditure of the security deposit.
The County must promptly notify the franchisee of the amount and date of any withdrawal.
(d) Within 30 days after the County gives notice that an amount has been withdrawn from the security deposit, the franchisee must deposit a sum of money equal to the amount withdrawn. If the franchisee does not deposit the required amount within 30 days, the entire security deposit remaining may be forfeited. In addition, that failure is a violation of this Chapter for which the County may revoke the franchise or take any other enforcement action.
(e) The security deposit is the property of the County if the franchise is revoked. The County must return the security deposit to the franchisee after the franchise is terminated if there is no outstanding default or unpaid amounts owed to the County by the franchisee.
(f) The rights reserved to the County with respect to the security deposit are in addition to all other rights of the County under this Chapter or other law. An action, proceeding, or exercise of a right with respect to the security deposit does not affect any other right the County may have.
Editor’s note—2006 L.M.C., ch. 34, § 3, repeals 2002 L.M.C., ch. 31, § 4, as amended by 2005 L.M.C., ch. 14, § 2.
2005 L.M.C., ch. 14 , § 2, amends 2002 L.M.C., ch. 31, § 4, as follows: Expiration date. This act expires on December 31, 2008.
2002 L.M.C., ch. 31, §§ 2, 3 and 4, state:
Sec. 2. Service-level requirements for cable modem service. The County Executive must issue regulations under method (2) establishing minimum cable modem service levels that a franchisee must provide. The regulations supersede any less-stringent requirements in a franchise or subscriber agreement.
Sec. 3. Transition.
(a) This Act applies to each current or future franchise, franchisee, subscriber, or other person subject to the requirements of the County Cable Communications Act, as amended by this and any future Act, and supersedes any contrary regulation, franchise, franchise agreement, subscriber agreement, or other agreement. The complaint adjudication provisions in Chapter 8A of the Code, as amended by this Act, apply to any complaint pending on, or filed on or after, the date this Act takes effect [March 6, 2003]. Section 8A-31A(i) applies to any subscriber agreement modified or entered into after this Act becomes law [December 5, 2002].
(b) The County Executive must designate the initial term of 2 members of the Cable Compliance Commission as 2 years. Any later term of these 2 members, and the terms of all other members, mut be 3 years.
Sec. 4. Expiration date. This Act expires on December 31, 2005.