Within ten (10) days after the effective date of the franchise, the
Grantee shall deposit into a bank account, established by the Grantor,
the sum specified in the Franchise Agreement, as security for the
faithful performance by it of all the provisions of the franchise,
and compliance with all orders, permits and directions of any agency
of the Grantor having jurisdiction over its acts or defaults under
this ordinance, and the payment by the Grantee of any claims, liens
and taxes due the Grantor which arise by reason of the construction,
operation or maintenance of the system.
Subject to the provisions of paragraph d below, the security
fund may be assessed by the Grantor for purposes including, but not
limited to, the following:
1. Failure of Grantee to pay Grantor sums due under the terms of the
franchise.
2. Reimbursement of costs borne by the Grantor to correct franchise
violations not corrected by Grantee, after due notice.
3. Monetary remedies or damages assessed against Grantee due to default
or violation of franchise requirements.