Common use of Security Fund Clause in Contracts

Security Fund. ‌ 11.4.1. In addition to the Performance Bond required pursuant to Section 11.3 above, Franchisee shall post a security fund with the LFA 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”). 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 LFA having jurisdiction over Franchisee’s acts or defaults under the Cable Law; (ii) payment of any claims, liens, and taxes due to the LFA that arise by reason of the operation or maintenance of the Cable System; (iii) failure of Franchisee to pay the LFA sums due under the provisions of this Agreement and the Cable Law;