A. 
Performance bond. 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 Township, a corporate surety bond in such sum as specified in the franchise agreement to guarantee the faithful performance by the grantee of all its obligations provided under this chapter and the franchise agreement. Failure to timely obtain, file and maintain said bond shall constitute a substantial violation within the meaning of this section.
B. 
Conditions. The performance bond shall provide the following conditions:
(1) 
There shall be recoverable by the Township jointly and severally from the principal and surety, any and all fines and liquidated damages due to the Township, as specified in the franchise agreement, and any and all damages, losses, costs, and expenses suffered or incurred by the Township resulting from the failure of the grantee to (i) faithfully comply with the provisions of this chapter and the franchise agreement; (ii) comply with all orders, permits and directives of any Township agency or body having jurisdiction over its acts or defaults; (iii) pay fees due to the Township; (iv) pay any claims, liens or taxes due the Township which arise by reason of the construction, operation, maintenance or repair of the cable communications system. Such losses, costs and expenses shall include but not be limited to attorney's fees and other associated expenses.
(2) 
The total amount of the bond shall be forfeited in favor of the Township in the event that the Township revokes the franchise pursuant to § 56-13 for the two following reasons:
(a) 
The grantee abandons the cable communication systems at any time during the term of the franchise or any extension thereof; or
(b) 
The grantee assigns the franchise without the express written consent of the Township, provided that the grantee has been notified of such noncompliance in writing by the Township and has failed to cure same within 30 days.
C. 
Reduction of bond. Upon written application by the grantee, the Township 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 Township's right to require the full bond at any time thereafter.
D. 
Letter of credit. If requested by the Township in lieu of the performance bond required by this section, the grantee shall obtain, maintain and file with the Township an irrevocable letter of credit from a financial institution licensed to do business in the state in any amount specified in the franchise agreement, naming the Township as beneficiary. The form and contents of such letter of credit shall be approved by the Township 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 herein shall constitute a substantial violation within the meaning of this chapter.
E. 
Use of performance bond or letter of credit. Prior to drawing upon the letter of credit or the performance bond for the purposes described in this section, the Township shall notify the grantee in writing specifying the item for which payment is claimed and the date it was due. The grantee shall have 10 days from the receipt of such written notice to make a full and complete payment. If the grantee does not make the payment, the Township may withdraw the amount thereof, with interest and penalties, from the letter of credit or the performance bond.
F. 
Notification. Within three days of a withdrawal from the letter of credit or performance bond, the Township shall send to the grantee, by certified mail, return receipt requested, written notification of the amount, date and purpose of such withdrawal.
G. 
Replenishment of letter of credit or performance bond. No later than 30 days after mailing to the grantee by certified mail notification of a withdrawal pursuant to Subsection F above, 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 substantial violation of this chapter.
H. 
Nonrenewal, alteration, or cancellation or letter of credit or performance bond. The performance bond or letter of credit required herein shall be in a form satisfactory to the Township and shall require 30 days' written notice of any nonrenewal, alteration or cancellation to both the Township and the grantee. The grantee shall, in the event of any such cancellation notice, obtain, pay all premiums for, and file with the Township, written evidence of the issuance of replacement bond or letter of credit within 30 days following receipt by the Township or the grantee of any notice of cancellation.
I. 
To offset the effects of inflation, the amounts of the bond or letter of credit provided for herein 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 Township.
A. 
Within 10 days after the effective date of a franchise agreement, the grantee shall deposit with the grantor and maintain on deposit through the term of this franchise, in cash, such sum as specified in the franchise agreement, as security for the payment of any fees, liquidated damages or penalties imposed under this chapter. Said sum shall be placed by the grantor in an interest-bearing account.
B. 
Within 10 days after notice to the grantee that any amount has been withdrawn from the security fund deposited pursuant to Subsection A of this section, the grantee shall pay to, or deposit with, the grantor a sum of money or securities sufficient to restore such security fund to the original amount as specified in the franchise agreement.
C. 
The security fund deposited pursuant to this section shall become the property of the grantor in the event that this franchise is canceled by reason of default of the grantee. The grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit with the grantor at the expiration of the term of this franchise, provided that there is then no outstanding default on the part of the grantee.
D. 
The rights reserved to the grantor with respect to the security funds are in addition to all other rights of the grantor, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such security funds shall affect any other right the grantor may have.
A. 
Within 30 days after the effective date of the franchise agreement and thereafter continuously through the duration of the franchise and any extensions or renewals thereof, the grantee shall furnish to the Township certificates of insurance, approved by the Township, for all types of insurance required under this section. Failure to furnish said certificates of insurance in a timely manner shall constitute a violation of this chapter.
B. 
Any insurance policy obtained by the grantee in compliance with this section shall be filed and maintained with the Township during the term of the franchise, and may be changed from time to time to reflect changing liability limits and/or to compensate for inflation. Grantee shall immediately advise the Township of any litigation that may develop that would affect this insurance.
C. 
Neither the provisions of this section nor any damages recovered by the Township hereunder shall be construed to or limit the liability of the grantee under any franchise issued hereunder or for damages.
D. 
All insurance policies maintained pursuant to this chapter or the franchise agreement shall contain the following, or a comparable, endorsement:
"It is hereby understood and agreed that this insurance policy may not be canceled by the insurance company nor the intention not to renew be stated by the insurance company until 30 days after receipt by the Township Manager, by registered mail, of a written notice of such intention to cancel or not to renew."
E. 
All insurance policies maintained pursuant to this chapter or the franchise agreement shall name the Township as an additional insured.
F. 
All insurance policies provided under the provisions of this chapter or the franchise agreement shall be written by companies authorized to do business in the state, and approved by the State Insurance Commission.
G. 
At any time during the term of the franchise, the Township may request and the grantee shall comply with such request, to name the Township, all elected Township officials, and Township employees with cable-related responsibilities as additional named insured for all insurance policies written under the provisions of this chapter or the franchise agreement.
H. 
To offset the effects of inflation and to reflect changing liability limits, all of the coverages, limits, and amounts of the insurance provided for herein 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 Township by resolution.
I. 
General liability insurance. The grantee shall maintain, and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, general liability insurance insuring the grantee for a minimum of $50,000,000 for all damage, injury, accident, or death.
J. 
Libel and allied torts. The grantee shall maintain a libel and allied torts insurance policy in an amount specified in the franchise agreement.
K. 
Such general liability insurance must include coverage for all of the following: comprehensive form, premises-operations, explosion and collapse hazard, underground hazard, products/completed operations hazard, contractual insurance, broad form property damage, and personal injury.
L. 
Motor vehicle liability insurance. The grantee shall maintain, and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, motor vehicle liability insurance for owned, non-owned, or rented vehicles in the minimum amount of:
(1) 
$5,000,000 for bodily injury and consequent death per occurrence;
(2) 
$5,000,000 for bodily injury and consequent death to any one person; and
(3) 
$1,000,000 for property damage per occurrence.
M. 
Worker's compensation and employer's liability insurance. The grantee shall maintain, and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, worker's compensation and employer's liability, valid in the state, in the minimum amount of:
(1) 
Statutory limit for worker's compensation.
(2) 
$100,000 for employer's liability.
A. 
To the fullest extent permitted by law, grantee shall, at its sole cost and expense, fully indemnify, defend and hold harmless the Township, its officers, public officials, boards and commission, agents, and employees from and against any and all lawsuits, claims (including without limitation worker's compensation claims against the Township or others), causes of action, actions, liability, and judgments for injury or damages (including but not limited to expenses for reasonable legal fees and disbursements assumed by the Township in connection therewith):
(1) 
To persons or property, in any way arising out of or through the acts or omissions of grantee, its subcontractors, agents or employees.
(2) 
Arising out of any claim for invasion of the right of privacy, for defamation of any person, firm or corporation, or the violation or infringement of any copyright, trademark, trade name, service mark or patent, or any other right of any person, firm or corporation, but excluding claims arising out of or related to Township programming or programming for which the grantee is not legally responsible.
(3) 
Arising out of grantee's failure to comply with the provisions of any federal, state or local statute, ordinance or regulation applicable to grantee in its business hereunder.
(4) 
Arising out of any action or claim related to obscenity, indecency or sexually explicit programming.
B. 
The foregoing indemnity is conditioned upon the following: the Township shall give to grantee prompt notice of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this section. Nothing herein shall be deemed to prevent the Township from cooperating with the grantee and participating in the defense of any litigation by its own counsel at its own costs and expense.