Common use of Security Fund Clause in Contracts

Security Fund. In addition to the Performance Bond required pursuant to Section 13.7 above, Franchisee shall post a security fund with the Town in the form of a letter of credit or cash, as determined in the sole discretion of Franchisee, in the amount of Twenty Thousand Dollars ($20,000) (the “Security Fund”). A letter of credit shall be in a form reasonably acceptable to the Town. The Security Fund shall be used to: (i) ensure the faithful performance by Franchisee of its obligations under this Agreement and compliance with all orders, permits, and directions of any agency of the Town having jurisdiction over Franchisee’s acts or defaults under the Cable Code; (ii) payment of any claims, liens, and taxes due to the Town that arise by reason of the operation or maintenance of the Cable System; (iii) failure of Franchisee to pay the Town sums due under the provisions of this Agreement and the Cable Code; (iv) reimbursement of costs borne by the Town to correct Franchisee violations not corrected by Franchisee after notice and the opportunity to cure as provided herein; and (v) monetary remedies, penalties, or damages assessed against Franchisee due to Franchisee violations. If the Franchise is revoked for cause by reason of the default of Franchisee under the Cable Code and Section 14.10 of this Agreement, the Security Fund deposited under this Section shall become the property of the Town. If there is no outstanding default by Franchisee at the end of one hundred eighty (180) days after the termination of the Franchise, Franchisee shall be entitled to the return of all or any part of the Security Fund that remains on deposit and to any accrued interest.

Security Fund. 13.8.1 In addition to the Performance Bond required pursuant to Section 13.7 above, Franchisee shall post a security fund with the Town in the form of a letter of credit or cash, as determined in the sole discretion of Franchisee, in the amount of Twenty Ten Thousand Dollars ($20,00010,000) (the “Security Fund”). A letter of credit shall be in a form reasonably acceptable to the Town. The Security Fund shall be used to: (i) ensure the faithful performance by Franchisee of its obligations under this Agreement and compliance with all orders, permits, and directions of any agency of the Town having jurisdiction over Franchisee’s acts or defaults under the Cable Code; (ii) payment of any claims, liens, and taxes due to the Town that arise by reason of the operation or maintenance of the Cable System; (iii) failure of Franchisee to pay the Town sums due under the provisions of this Agreement and the Cable Code; (iv) reimbursement of costs borne by the Town to correct Franchisee violations not corrected by Franchisee after notice and the opportunity to cure as provided herein; and (v) monetary remedies, penalties, or damages assessed against Franchisee due to Franchisee violations. If the Franchise is revoked for cause by reason of the default of Franchisee under the Cable Code and Section 14.10 13.6 of this Agreement, the Security Fund deposited under this Section shall become the property of the Town. If there is no outstanding default by Franchisee at the end of one hundred eighty (180) days after the termination of the Franchise, Franchisee shall be entitled to the return of all or any part of the Security Fund that remains on deposit and to any accrued interest. 13.8.2 Within five (5) days after a draw, the Town shall notify the Franchisee of the date and amount of, and reason for, the draw. In the event that the Security Fund is in the form of cash, amounts withdrawn from the Security Fund pursuant to this Subsection shall be replenished by Franchisee by delivering to the Town or its designee for deposit in the Security Fund a cash amount equal to the amount so withdrawn within thirty (30) days of its receipt of notice from the Town of the date and amount of such withdrawal, unless Franchisee files a written challenge of the draw with the Town Council or in a court of law. In the event the security deposit is in the form of a letter of credit, Franchisee shall replenish the Security Fund by either restoring the Letter of Credit to its full original amount or by establishing a new letter of credit in the amount of Ten Thousand and No/100 Dollars ($10,000) within thirty