1. The City may require any successor, assignee, or transferee of the grantee to file with the City a performance bond in an amount as specified in the franchise agreement prior to the commencement of operation. The performance bond shall be in favor of the City, and the City may be entitled to damages as a result of any occurrence in the operation of or termination of the cable system operated under this chapter or the franchise agreement.
2. Such bond as contemplated herein shall be in the form approved by the City.
3. In no event shall the amount of said bond be construed to limit the liability of the grantee for damages.
4. Within ten days after execution of the franchise agreement, the grantee shall deposit with the City Clerk, and maintain on deposit through the term of this franchise, the sum of $10,000.00 as security for the faithful performance by it of all the provisions of the franchise and compliance with all orders, permits, and directions of any agency of the City having jurisdiction over its acts or defaults under the contract, 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.
5. Within ten days after notice that any amount has been withdrawn from the security fund deposited pursuant to subsection 1 of this section, the grantee shall pay to, or deposit with, the City Clerk a sum of money sufficient to restore such security fund to the original amount of $10,000.00.
6. 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 to the City within such ten days any damages, costs, or expenses which the City shall be compelled to pay by reason of any act or default of the grantee in connection with the franchise; or fails after three days’ notice of such failure by the Council to comply with any provision of the contract which the Council reasonably determines can be remedied by an expenditure of the security, the Clerk may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the Clerk shall notify the company of the amount and date thereof.
7. The security fund deposited pursuant to this section shall become the property of the City in the event that the contract is cancelled by reason of the default of the grantee. The grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit at the expiration of the term of the franchise, provided that there is then no outstanding default on the part of the grantee. Interest earned by the investment of the security fund will accrue to the grantee.
8. The rights reserved to the City with respect to the security fund are in addition to all other rights of the City, whether reserved by this chapter or authorized by law, and no action, proceeding, or exercise of a right with respect to such security fund shall affect any other right the City may have.