(A) Grantee shall maintain at its own expense, and by acceptance of a Franchise be deemed to have agreed that it will maintain on deposit with the Village, throughout the term of such Franchise, and any extension thereof, a Security Fund in the form of a cash escrow or a letter of credit from a financial institution in the amount of Ten Thousand Dollars ($10,000). The form and content of such Security Fund cash escrow or letter of credit shall be in a form approved by the Corporation Counsel. In particular, but without limitation, such cash escrow or letter of credit shall be drawn in the case of any default or failure of the Grantee to pay any fees, penalties, claims, liens or taxes due the Village, under the Franchise or this Enabling Ordinance which arise by reason of the construction, operation, or maintenance of the Cable System.
(1) If the Grantee fails to pay to the Village any compensation due the Village within the time fixed herein; or fails to repay the Village within ten (10) days, any damages, costs or expenses which the Village is compelled to pay by reason of any act or default of the Grantee in connection with the Franchise; or fails after ten (10) days notice of such failure by the Grantee to comply with any provision of this Franchise which carries liquidated damages as prescribed herein after notice, hearing, and a determination have been properly provided pursuant to Section 113.2204 and held by the Village, the Village may immediately request payment of the amount thereof, with interest, from the cash escrow or letter of credit in the event the Village has incurred any out-of-pocket cost, expense, damage or loss because of any act or omission attributable to the Grantee that consti- tutes a violation, default or failure to comply with the requirements of this Agreement in connection with the construction, operation or maintenance of the Cable System and the provision of Cable Service within the Village. The Grantee shall, within three (3) days of the receipt of such notification, take all action required to restore the Security Fund cash escrow or letter of credit to its original, full amount, including all interest accrued by the escrow account.
(2) The rights reserved to the Village with respect to the Security Fund cash escrow or letter of credit are in addition to all other rights of the Village, whether reserved by the Enabling Ordinance or this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such Security Fund cash escrow or letter of credit shall affect any other right the Village may have.
(3) If a letter of credit is utilized as the instrument of the Security Fund, it shall contain the following endorsement:
“It is hereby understood and agreed that this letter of credit shall not be canceled by the surety until sixty (60) days after receipt by the Village Board, by registered mail, of a written notice of such intention to cancel or not to renew.”
(B) All insurance certificates reflecting the Grantee's policies, bonds, Security Fund bond and letter of credit required by this Section shall contain a provision requiring at least thirty (30) days written notice to both the Village and the Grantee of any cancellation, termination, or other expiration and shall provide that no such cancellation, termination or expiration shall be effective prior to such notice. Copies of such documents shall be filed and maintained with the Village Clerk and reviewed by the Village regarding Franchise compliance. Notices of any renewal of any expiring policy or bond shall be filed with the Village Clerk at least sixty (60) days prior to the date of such expiration.
(Ord. 01-2301, passed 12-11-01) Penalty, see § 113.2202