(a) A grantee shall, within thirty days of the execution of the franchise, file a performance bond and a letter of credit drawn on a Federal bank in amounts acceptable to the City. The purpose of the letter of credit is to guarantee the maintenance and operation of the cable system. The performance bond 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 the cable system.
(b) At that point in time when the grantee can show to the City that energized trunk cable passes all homes in accordance with Section 809.04, the performance bond shall be terminated.
(c) The corporate surety bond (if used) 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. 1996-17. Passed 5-21-96.)