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an amount equal to the amount so withdrawn.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the security fund shall be withdrawn by the Town and paid to the grantee within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.