(A) Within 30 days after the effective date of the franchise, the grantee shall deposit into a bank account established by the grantor, and maintain on deposit through the term of the franchise, the sum specified in the franchise agreement as security for the faithful performance by the grantee of all the provisions of the franchise, and compliance with all orders, permits and directions of any agency of the grantor having jurisdiction over its acts or defaults pursuant to this chapter, and the payment by the grantee of any claims, liens and taxes due the grantor which arise by reason of the construction, operation or maintenance of the system.
(B) Within 30 days after notice to the grantee that any amount has been withdrawn by the grantor from the security fund pursuant to division (A) of this section, the grantee shall deposit a sum of money sufficient to restore such security fund to the original amount.
(C) If the grantee fails, after ten days notice, to pay to the grantor any taxes due and unpaid; or fails to repay to the grantor, within such ten days, any damages, costs or expenses which the grantor shall be compelled to pay by reason of any act or default of the grantee in connection with the franchise; or fails, after 30 days notice of such failure by the grantee to comply with any provision of the franchise which the grantor reasonably determines can be remedied by an expenditure of the security, the grantor may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the grantor shall notify the grantee of the amount and date thereof.
(D) The security fund deposited pursuant to this section shall become the property of the grantor in the event the franchise is canceled by reason of the default of the grantee or revoked for cause. 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, or upon the termination of the franchise at an earlier date, provided there is then no outstanding default on the part of the grantee.
(E) The rights reserved to the grantor with respect to the security fund are in addition to all other rights of the grantor, 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 grantor may have.
('65 Code, § 7-8.603) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999