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A. A grantee may be required to provide a security fund if specified in its franchise agreement. The security fund shall be deposited with a financial institution approved by the village, in an account solely under the control of the village. Once established, the grantee at all times shall thereafter maintain the security fund in such amount. The village shall have the sole right to make withdrawals from the security fund. The grantee shall have no right to make withdrawals from the security fund except for withdrawals of accrued interest. Interest earned on the security fund, which may be paid to the grantee semiannually upon ten (10) days' prior written notice to the village, provided the grantee is not at the time of payment in violation of this section 3-1-10 or the grantee's franchise agreement.
B. The purposes of a security fund shall be to serve as security for: 1) the faithful performance by the grantee of all terms and conditions of this section 3-1-10 and its franchise, 2) any expenditure, damage or loss incurred by the village and occasioned by such grantee's failure to comply with all the rules, regulations, orders, permits and other directives of the village issued pursuant to this section 3-1-10 or the grantee's franchise agreement, 3) the payment by such grantee of all fees, liens and taxes owed to the village and all damage, claims, costs or expenses, which the village has paid or incurred by reason of any act or omission of such grantee or in enforcing the provisions of this section 3-1-10 or the grantee's franchise agreement, and all other payments due the village from such grantee, 4) all costs and expenses of construction or restoration work performed by the village as a consequence of such grantee's failure to perform its construction and restoration obligations pursuant to this section 3-1-10 or the grantee's franchise agreement, and 5) payment of any liquidated damages due to the village from such grantee.
C. Franchise agreements may provide that in the event that the village should draw from this security fund, the grantee shall restore the value of said security fund to the total amount provided in the franchise agreement within the time period therein specified, and if the grantee shall fail to restore the security fund to its original amount within such time period, after notice from the village of the date and amount which has been withdrawn from the security fund, such failure shall constitute a material breach of this section 3-1-10 and of the grantee's franchise agreement.
D. In the event of any material breach by a grantee of any provision of the franchise, the village may exercise all rights and remedies provided in the franchise agreement. Such rights and remedies may include the imposition of a fine upon the grantee in an amount which may be withdrawn from the security fund.
E. Upon termination of the franchise, other than a revocation, the particular grantee shall be entitled to a return of the security fund established by such grantee or such portion thereof as remains on deposit at termination, after account is taken for all offsets necessary to compensate the village for any uncured failure by such grantee to comply with any provision of this section 3-1-10 or the grantee's franchise agreement. In the event of any termination of a grantee's franchise by the village, the security fund and all accrued interest thereon shall be released to the village to cover any costs and expenses, loss or damage incurred or to be incurred by the village as a result of such termination, provided that if any portion of the security fund and accrued interest shall remain after payment thereof, the excess shall be refunded to the grantee.
F. Upon the occurrence of any event that may lead to the foreclosure, condemnation or receivership of any part of the cable system, the grantee shall immediately provide written notification to the village. Such notification shall be notice of cause for revocation of the franchise, and the village may revoke the franchise under procedures set forth in this section 3-1-10.
G. The grantee shall not be relieved of any obligation by reason of any failure of the village to enforce prompt compliance with any provision of this section 3-1-10, a franchise or a franchise agreement.
H. All rights and remedies given to the village under this section 3-1-10 or a grantee's franchise agreement, shall be in addition to and cumulative with each other and with any and all other rights or remedies, existing or implied, now or hereafter available to the village, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically provided or otherwise existing or given may be exercised from time to time and as often and in such order as may be deemed expedient by the village in its sole judgment and discretion, and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy nor shall any such delay or omission be construed to be a waiver of or acquiescence to any default. The exercise of any such right or remedy by the village shall not release the grantee from its obligations or any liability under this section 3-1-10, a franchise or a franchise agreement. (Ord. 09-4-5, 4-7-2009)