<div class="chunk-title">Sec. 40-106. - Performance bond and letter of credit.</div>
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            <p class="incr0">
               (a)
               </p>
            		
            <p class="content1">
               <span class="ital">Surety instrument required.</span> Upon the effective date of the franchise granted pursuant to this article, 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 or an irrevocable letter of credit in an amount specified in the franchise
               to guarantee the faithful performance of the grantee of all its obligations provided
               under this article and the franchise. Failure to timely obtain, file and maintain
               such bond or letter of credit shall constitute a substantial violation within the
               meaning of this section.
               </p>
            		
            <p class="incr0">
               (b)
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            <p class="content1">
               <span class="ital">Conditions.</span> The performance bond shall provide the following conditions:
               </p>
            		
            <p class="incr1">
               (1)
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            <p class="content2">
               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:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
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               Faithfully comply with this article and the franchise.
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
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               Comply with all orders, permits and directives of any county agency or body having
               jurisdiction over its acts or defaults.
               </p>
            		
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               c.
               </p>
            		
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               Pay fees due to the county.
               </p>
            		
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               d.
               </p>
            		
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               Pay any claims, liens or taxes due the county which arise by reason of the construction,
               operation, maintenance or repair of the cable system.
               </p>
            		
            <p class="b2">
               Such losses, costs and expenses shall include but not be limited to attorney's fees
               and other associated expenses.
               </p>
            <p class="incr1">
               (2)
               </p>
            		
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               The total amount of the bond shall be forfeited in favor of the county if:
               </p>
            		
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               a.
               </p>
            		
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               The grantee abandons the cable system at any time during the term of the franchise
               or any extension thereto; or
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
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               The grantee assigns the franchise without the express written consent of the county.
               </p>
            		
            <p class="incr0">
               (c)
               </p>
            		
            <p class="content1">
               <span class="ital">Reduction of surety instrument.</span> Upon written application by the grantee, the county may, at its sole option, permit
               the amount of the bond or the letter of credit to be reduced or waive the requirements
               for either a performance bond or letter of credit subject to the conditions set forth
               in this section. 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 or letter of credit at any time thereafter. However, no application
               shall be made by the grantee within one year of any prior application.
               </p>
            		
            <p class="incr0">
               (d)
               </p>
            		
            <p class="content1">
               <span class="ital">Letter of credit.</span> If a letter of credit is required in the franchise, the grantee shall obtain, maintain
               and file with the county an irrevocable letter of credit from a financial institution
               licensed to do business in the state in an amount specified in the franchise, naming
               the county as beneficiary. The form and contents of such letter of credit shall be
               approved by the county and shall be released only upon expiration of the franchise
               or upon the replacement of the letter of credit by a successor grantee. Failure to
               obtain the letter of credit within the time specified shall constitute a substantial
               violation within the meaning of this section.
               </p>
            		
            <p class="incr0">
               (e)
               </p>
            		
            <p class="content1">
               <span class="ital">Effect of failure to perform certain acts.</span> The county may draw upon the letter of credit or call on the performance bond if
               the grantee fails to:
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               Faithfully comply with this article and the franchise;
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               Comply with all orders, permits and directives of any county agency or body having
               jurisdiction over its acts or defaults;
               </p>
            		
            <p class="incr1">
               (3)
               </p>
            		
            <p class="content2">
               Pay fees due to the county; or
               </p>
            		
            <p class="incr1">
               (4)
               </p>
            		
            <p class="content2">
               Pay any claims, liens or taxes due the county which arise by reason of the construction,
               operation, maintenance or repair of the cable system.
               </p>
            		
            <p class="incr0">
               (f)
               </p>
            		
            <p class="content1">
               <span class="ital">Use of performance bond or letter of credit.</span> Prior to drawing upon the letter of credit or the performance bond for the purposes
               described in this section, the county shall notify the grantee in writing that a noncompliance
               issue has arisen that is giving the county reason to draw upon the letter of credit
               or performance bond. The county shall extend the grantee a 30-day period within which
               the grantee may demonstrate that a violation does not exist or to cure an alleged
               violation or, if the violation cannot be corrected in 60 days, to submit a plan satisfactory
               to the county to correct the violation or noncompliance. If a violation or noncompliance
               factor is proven to exist and nor cure or action on a plan acceptable to the county
               has been received by the county within 30 days, the county shall notify the grantee
               that payment is due, and the grantee shall have ten days from the receipt of such
               written notice to make a full and complete payment. If the grantee does not make the
               payment within ten days, the county may withdraw the amount thereof, with interest
               and penalties, from the letter of credit or the performance bond.
               </p>
            		
            <p class="incr0">
               (g)
               </p>
            		
            <p class="content1">
               <span class="ital">Notification.</span> Within three days of a withdrawal from the letter of credit or 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.
               </p>
            		
            <p class="incr0">
               (h)
               </p>
            		
            <p class="content1">
               <span class="ital">Replenishment of letter of credit or performance bond.</span> No later than 30 days after mailing to the grantee by certified mail notification
               of a withdrawal pursuant to subsection (f) of this section, the grantee shall replenish
               the letter of credit or performance bond in an amount equal to the amount so withdrawn.
               Failure to make timely replenishment of such amount to the letter of credit or performance
               bond shall constitute a material violation of this article.
               </p>
            		
            <p class="incr0">
               (i)
               </p>
            		
            <p class="content1">
               <span class="ital">Nonrenewal, alteration or cancellation of letter of credit or performance bond.</span> The performance bond or letter of credit required in this section shall be in a form
               satisfactory to the county and shall require 30 days' written notice of any nonrenewal,
               alteration or cancellation to both the county and the grantee. The grantee shall,
               if it receives any such cancellation notice, obtain, pay all premiums for, and file
               with the county written evidence of the issuance of the replacement bond or policies
               within 30 days following receipt by the county or the grantee of any notice of cancellation.
               </p>
            		
            <p class="incr0">
               (j)
               </p>
            		
            <p class="content1">
               <span class="ital">Increases.</span> To offset the effects of inflation, the amounts of the bond and letter of credit
               provided for in this section are subject to reasonable increases at the end of every
               three-year period of the franchise, applicable to the next three-year period, upon
               the determination of the county.
               </p>
            		
            <p class="historynote0">
               (Code 1995, Â§ 517.050)
               </p></div>