(a) Security Deposit. A franchise agreement may provide that, prior to the effective date of the franchise, the franchisee shall post with the Borough a cash security deposit to be used as a security fund to ensure the franchisee's faithful performance of and compliance with all provisions of this chapter, the franchise agreement, and other applicable law, and compliance with all orders, permits, and directions of the Borough, and the payment by the franchisee of any claims, liens, fees, or taxes due the Borough which arise by reason of the construction, operation, or maintenance of the system. The amount of the security fund shall be fifty thousand dollars ($50,000.00).
(b) Surety Bond. In any franchise agreement entered into before the effective date of this chapter, the Borough and franchisee may agree that the franchisee may, in lieu of the security fund, file and maintain with the Borough a bond with an acceptable surety in the amount of one hundred thousand dollars ($100,000.00) to indemnify the Borough against any losses it may suffer in the event the franchisee fails to comply with one or more of the provisions of its franchise. Said bond shall be obtained at the sole expense of the franchisee and remain in effect for the full term of the franchise plus an additional six months thereafter. The franchisee and its surety shall be jointly and severally liable under the terms of the bond for any damages or loss suffered by the Borough as a result of the franchisee's nonperformance, including the full amount of any compensation, indemnification or cost of removal of any property of the franchisee in the event of default, and a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond. The bond shall provide for 30 days' prior written notice to the Borough of any intention on the part of the franchisee to cancel, fail to renew, or otherwise materially alter its terms. Neither the filing of a surety bond with the Borough, nor the receipt of any damages recovered by the Borough thereunder, shall be construed to excuse faithful performance by the franchisee or limit the liability of the franchisee under the terms of its franchise for damages, either to the full amount of the bond or otherwise.
(c) Security Fund in Addition to all Other Borough Rights. The rights reserved to the Borough with respect to any security fund or an indemnity bond are in addition to all other rights of the Borough, whether reserved by this chapter or authorized by other law or the franchise agreement, and no action, proceeding, or exercise of a right with respect to such security fund or indemnity bond will affect any other right the Borough may have.
(d) Procedures. The franchise agreement shall provide for the procedures to be followed with respect to drawing upon the security fund and surety bond.
(Ord. 920. Passed 7-14-97; Ord. 938. Passed 7-12-99.)