A. 
A franchise agreement may provide that, prior to the franchise's becoming effective, the grantee shall post with the Town a cash security deposit to be used as a security fund to ensure the grantee's faithful performance of and compliance with all provisions of this chapter, the franchise agreement, and other applicable laws and compliance with all orders, permits, and directions of the Town or any agency thereof having jurisdiction over the grantee's acts or defaults under the franchise and the payment by the grantee of any claims, liens, fees, or taxes due the Town which arise by reason of the construction, operation, or maintenance of the system. The amount of any security fund shall be specified in a franchise agreement.
B. 
In lieu of a cash security fund, a grantee may agree to file and maintain with the Town an irrevocable letter of credit with a bank having an office in the State of Maine in the amount specified in the preceding subsection to serve the same purposes as set forth therein. Said letter of credit shall remain in effect for the full term of the franchise plus an additional six months thereafter. The grantee and its surety shall be jointly and severally liable under the terms of the letter of credit for the grantee's failure to ensure its faithful performance of and compliance with all provisions of this chapter, the franchise agreement, and other applicable law and compliance with all orders, permits, and directions of the Town and the payment by the grantee of any claims, liens, fees, or taxes due the Town which arise by reason of the construction, operation, or maintenance of the system. The letter of credit shall provide for 30 days' prior written notice to the Town of any intention on the part of the grantee to cancel, fail to renew, or otherwise materially alter its terms. Neither the filing of a letter of credit with the Town nor the receipt of any damages recovered by the Town thereunder shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under the terms of its franchise for damages, either to the full amount of the letter of credit or otherwise.
If a grantee fails to make timely payment to the Town of any amount due as a result of franchise requirements, fails to make timely payment to the Town of any amounts due under a franchise agreement or applicable law, fails to make timely payment to the Town of any taxes lawfully due, or fails to compensate the Town for any damages, costs, or expenses the Town suffers or incurs by reason of any act or omission of the grantee in connection with its franchise agreement, the Town may withdraw the amount thereof from the security fund. To invoke the provisions of this section, the Town shall give the grantee written notice of the default in the grantee's performance. If within 30 calendar days following such written notice from the Town to the grantee the grantee has not remedied the default to the satisfaction of the Town, the Town may proceed to withdraw the amount in question from the security fund, provided that, if by its nature the default cannot be remedied within 30 days and the grantee has demonstrated to the satisfaction of the Town that it is making a continuing good faith effort to remedy the default, the Town shall not draw on the security fund.
Within 10 business days of a withdrawal from the security fund, the Town shall mail, by certified mail, return receipt requested, written notification of the amount, date, and purpose of such withdrawal to the grantee.
If at the time of a withdrawal from the security fund by the Town the amount of the fund is insufficient to provide the total payment towards which the withdrawal is directed, the balance of such payment shall continue as the obligation of the grantee to the Town until it is paid.
No later than 30 days after mailing of notification to the grantee by certified mail, return receipt requested, of a withdrawal under the security fund, the grantee shall deliver to the Town for deposit in the security fund an amount equal to the amount so withdrawn. Failure to make timely delivery of such amount to the Town shall constitute a material violation of the franchise.
Upon termination of the franchise under conditions other than those stipulating forfeiture of the security fund, the balance then remaining in the security fund shall be withdrawn by the Town and paid to the grantee within 90 days of such termination, provided that there is then no outstanding material default on the part of the grantee.
The rights reserved to the Town with respect to Articles IV, V and VI hereof are in addition to all other rights of the Town, whether reserved by this chapter or authorized by other law or a franchise agreement, and no action, proceeding, or exercise of a right with respect to such sections shall affect any other right the Town may have.