<div class="chunk-title">Sec. 20-61. - Performance bond.</div>
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               (a)
               
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               <span class="ital">Performance bond.</span> Upon the effective date of the franchise, the grantee shall obtain and maintain during
               the entire term of the franchise and any extensions and renewals thereof, at its cost
               and expense, and file with the county, a corporate surety bond in an amount specified
               in the franchise to guarantee the faithful performance of the grantee of all its obligations
               provided under this chapter and the franchise. Failure to timely obtain, file and
               maintain said bond shall constitute a substantial violation within the meaning of
               this section.
               
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               (b)
               
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               <span class="ital">Conditions.</span> The performance bond shall be issued by a surety licensed to do business in North
               Carolina and shall provide the following conditions:
               
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               (1)
               
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               There shall be recoverable by the county jointly and severally from the principal
               and surety, any and all fines and liquidated damages due to the county and any and
               all damages, losses, costs, and expenses suffered or incurred by the county resulting
               from the failure of the grantee to: faithfully comply with the provisions of this
               chapter and the franchise; comply with all orders, permits and directives of any county
               agency or body having jurisdiction over its acts or defaults; pay fees due to the
               county; or, pay any claims, liens or taxes due the county which arise by reason of
               the construction, operation, maintenance or repair of the cable system. Such losses,
               costs and expenses shall include but not be limited to attorney's fees and other associated
               expenses.
               
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               (2)
               
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               The total amount of the bond shall be forfeited in favor of the county in the event:
               
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               a.
               
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               The grantee abandons the cable system or fails to initiate or complete construction
               of the cable system as specified at any time during the term of the franchise or any
               extension thereto; or
               
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               b.
               
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               The grantee assigns the franchise without the express written consent of the county,
               when such consent is required under this chapter or federal law or regulation.
               
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               c.
               
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               The franchise is terminated by reason of the default of the grantee.
               
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               (c)
               
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               <span class="ital">Reduction of bond.</span> Upon written application by the grantee, the county may, at its sole option, permit
               the amount of the bond to be reduced or waive the requirements for a performance bond
               subject to the conditions set forth below. Reductions granted or denied upon application
               by the grantee shall be without prejudice to the grantee's subsequent applications
               or to the county's right to require the full bond at any time thereafter. However,
               no application shall be made by the grantee within one year of any prior application.
               
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               (d)
               
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               <span class="ital">Use of performance bond.</span> Prior to drawing upon the performance bond for the purposes described in this section,
               the county shall notify the grantee in writing that payment is due and the grantee
               shall have 30 days from the receipt of such written notice to make a full and complete
               payment. If the grantee does not make the payment within 30 days, the county may withdraw
               the amount thereof, with interest and penalties, from the performance bond.
               
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               (e)
               
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               <span class="ital">Notification.</span> Within three days of a withdrawal from the performance bond, the county shall send
               to the grantee, by certified mail, return receipt requested, written notification
               of the amount, date and purpose of such withdrawal.
               
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               (f)
               
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               <span class="ital">Replenishment of performance bond.</span> No later than 30 days after mailing to the grantee by certified mail notification
               of a withdrawal pursuant to paragraph (f) above, the grantee shall replenish the performance
               bond in an amount equal to the amount so withdrawn. Failure to make timely replenishment
               of such amount to the performance bond shall constitute a substantial violation of
               this chapter.
               
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               (g)
               
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               <span class="ital">Non-renewal, alteration, or cancellation of performance bond.</span> The performance bond required herein shall be in a form satisfactory to the county
               and shall require 30 days written notice of any non-renewal, alteration or cancellation
               to both the county and the grantee. The grantee shall, in the event of any such cancellation
               notice, obtain, pay all premiums for, and file with the county, written evidence of
               the issuance of replacement bond or policies within 30 days following receipt by the
               county or the grantee of any notice of cancellation.
               
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               (h)
               
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               <span class="ital">Inflation.</span> The amount of the bond provided for herein, is subject to reasonable increases to
               offset the effects of inflation at the end of every three-year period of the franchise,
               applicable to the next three year period, upon the determination of the county.
               
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               (i)
               
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               <span class="ital">County rights.</span> The rights reserved to the county with respect to the performance bond are in addition
               to all other rights of the county, whether reserved by this chapter, the franchise
               or authorized by law, and no action, proceeding or exercise of a right with respect
               to such a bond shall affect any other right the county may have.
               
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               (j)
               
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               <span class="ital">Right to require replacement of bonds or insurance.</span> If the county becomes aware of the financial condition of any bonding or insurance
               company issuing a performance bond or insurance policy to grantee as required herein
               where, if such conditions were known at the time, the county would not have approved
               the surety of the bond or the county would not have found the form of the bond or
               the insurance policies satisfactory or if the financial condition of such bonding
               or insurance company materially change to the extent that such approvals would not
               have been made, the county may, at any time, require that any such bond or insurance
               policy be replaced with such other bond or insurance policy, consistent with the requirements
               set forth in this section.
               
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            <p class="historynote0">
               (Ord. No. 1998-05, art. VI, Â§ 6.1, 2-16-98)
               
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