A Company shall, within thirty days subsequent to the effective date of a Franchise Agreement, post a performance bond with the Village, written by an approved corporation surety in the amount of $50,000, and in a form satisfactory to the Village, guaranteeing a Company's continued operation of the System within the Village for the period specified in a Franchise Agreement. All damages which may be directly occasioned by the failure of a Company to perform under a Franchise Agreement or related Ordinance, shall be recoverable from the principals and sureties of said bond by the Village.
If a Company shall be in violation of any provision of a Franchise Agreement or any related Ordinance and not remedy such violation within thirty days after having received written notice from the Village to do so, then the Village, at its discretion, may declare a portion of the bond equivalent to the amount of damages sustained by the Village which are directly attributable to such breach forfeited, and Company shall thereupon by required:
(1) To remedy the breach immediately; and
(2) Within thirty days of such forfeiture, replace the forfeited portion of the bond.
Notwithstanding the foregoing, nothing contained in this subsection shall serve to absolve a Company of any of its obligations under a Franchise Agreement or any related Ordinance or the rules and regulations of the FCC.
No recovery by the Village of any sum by reason of the bond required hereunder shall be any limitation upon the liability of a Company to a Village, except that any sum received by a Village by reason of such bond shall be deducted from any recovery which a Village may have against a Company.
A Company shall pay all premiums chargeable for the bond, and shall keep the same in full force and effect at all times throughout the term of a Franchise Agreement and during the removal of all poles, wires, cables, underground conduits, manholes and other conductors, converters, equipment and fixtures subsequent to the termination of a Franchise Agreement. The bond shall contain a provision that it shall not be terminated or otherwise allowed to expire prior to thirty days written notice given to the Board of Trustees of the Village.