(A) Within 30 days after the grant and acceptance of this franchise, the grantee shall arrange for, and shall maintain throughout the term of this franchise, a performance bond for the protection of the government, with a corporate surety and trust company acceptable to the government. The performance bond shall be in a face amount of not less than $30,000. The performance bond shall be used to ensure that the operation of the cable system continues in an orderly and uninterrupted manner in the event of a default by the grantee, and to indemnify the government from any loss or damage to any governmental property arising out of the construction, operation, or maintenance of cable system by the grantee.

(B) The performance bond shall be maintained at $30,000 during the entire term of this franchise, even if amounts are withdrawn pursuant to division (A) or (C) of this section.

(C) If the grantee fails, after receipt of 21 days written notice, to pay to the government any compensation due pursuant to this franchise, any taxes due and unpaid or any damages, costs or expenses which the government is compelled to pay by reason of any act or default by the grantee in connection with this franchise, the government may, after affording grantee all due process procedures pursuant to § 116.44, immediately request payment of the amount thereof from the performance bond. Upon such request for payment, the government shall notify the grantee of the amount.
 
(D) The rights reserved to the government with respect to the performance bond are in addition to all other rights of the government, whether reserved by this franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the government may have.

(E) The performance bond shall contain the following endorsement: "It is hereby understood and agreed that this letter of credit may not be canceled or not renewed by the surety nor the intention to cancel or not to renew be stated by the surety until 30 days after written notice to the government of surety's intention to cancel or not to renew."
(Ord. 940.7A, passed - - )

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