Within seven days after the date of the grant of this franchise by the village, the grantee shall deposit into a bank account in the name of the village, and maintain on deposit until completion of system construction as determined by the village, the sum of $1,000 as security for the faithful performance by it of all the provisions of this franchise, and compliance with all orders, permits, and directions of the village and the payment by franchisee of any claim, liens, and taxes due the village which arise by reason of the construction, operation, or maintenance of the system. Interest accrued on this deposit shall be returned to the grantee if no penalties have been assessed. Provisions shall be made to permit the administrator designated in this franchise to withdraw funds from the security fund. The grantee shall not use the security fund for other purposes, and shall not assign, pledge, or otherwise use this security fund as security for any other purpose. The grantee shall receive 30 days written notice to correct any problem or institute an appeal before any funds can be withdrawn from this account.
(Prior Code, § 9-3-30)