(A) Grantor may require grantee to provide security, in an amount and form established in the franchise agreement. The amount of the security shall be established based on the extent of the grantee's obligations under the terms of the franchise.
(B) The security shall be available to grantor to satisfy all claims, liens and/or taxes due grantor from grantee which arise by reason of construction, operation, or maintenance of the system, and to satisfy any actual or liquidated damages arising out of a material breach of the franchise agreement, subject to the procedures and amounts designated in the franchise agreement.
(C) If the security is drawn upon by grantor in accordance with the procedures established in this chapter and the franchise agreement, grantee shall cause the security to be replenished to the original amount no later than 30 days after receiving written confirmation from the issuer where such security is maintained that grantor has made a draw against the security. Failure to replenish the security shall be deemed a material breach of the franchise.
(Ord. 1048, passed 1-22-02)