(a) A grantee shall, within thirty days of the execution of the franchise, file a letter of credit drawn on a Federal bank in the amount of twenty-five thousand dollars ($25,000) or a guaranty by a corporate parent of the grantee. The purpose of the letter of credit or guaranty is to guarantee the timely construction and full initial activation of the cable system. The letter of credit shall be for the purpose of allowing recovery of any and all damages, losses or costs suffered as a result of the failure of a grantee to satisfactorily complete and fully activate and maintain the cable television system.
(b) When the grantee can show to the satisfaction of the City that energized trunk cable passes 100 percent of homes, the grantee shall file a corporate surety bond ("the bond"), in an amount specified in the franchise, or a guaranty by the corporate parent of a grantee, which shall be maintained for the duration of the franchise to secure the grantee's obligations under the franchise and the letter of credit may be terminated.
(c) The bond shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled by the surety, nor the intention not to renew be exercised by the surety, until sixty days after receipt by the City, by registered mail, of a written notice of such intent to cancel or not to renew."
(Ord. 581. Passed 12-13-95.)