4.20.126.1.1. Within thirty (30) days after the effective date of the franchise agreement, franchisee shall deposit with the city an irrevocable letter of credit in the amount set forth in the franchise agreement and issued by a federally insured commercial lending institution with a net worth in excess or one hundred million dollars ($100,000,000.00) and an office in the state of California (although the letter of credit may be issued elsewhere).
4.20.126.1.2. The form and substance of said letter of credit shall be subject to the approval of the city; such approval shall be given where the letter of credit complies with the requirements of the ordinance codified in this title and the franchise agreement. If all such conditions are not satisfied, the franchisee shall take all such necessary or appropriate actions as to achieve such compliance within ten days following receipt of notice from the city.
4.20.126.1.4. The letter of credit shall be used to assure: the faithful performance by the franchisee of all its obligations under the franchise agreement and the ordinance codified in this title; compliance with all orders, permits and directions of the city having jurisdiction over the franchisee's acts or defaults under its franchise agreement or ordinance; and the payment by the franchisee of any penalties, liquidated damages, claims, liens, franchise fees, taxes or other fees due to the city which arise by reason of the construction, operation or maintenance of the cable system, including cost of removal or abandonment of any property of the franchisee.
4.20.126.1.5. The letter of credit shall be irrevocable within its term and shall be maintained from the date of its initial deposit with the city to and including the end of a period of two years following the termination, cancellation, revocation or denial of the renewal of the franchise agreement and the exhaustion of any subsequent legal appeals therefrom. (Ord. 205 § 3, 2001)