§ 33-01-150. Security fund.

A.

Grantor may require grantee to provide a security fund, in an amount and form established in the franchise agreement. The amount of the security fund shall be established based on the extent of the grantee's obligations under the terms of the franchise.

B.

The security fund shall be available to grantor as provided in section 33-01-340 to satisfy all claims, liens and/or taxes due grantor from grantee which arise by reason of construction, operation, or maintenance of the system, and to satisfy any actual or liquidated damages arising out of a franchise breach, subject to the procedures and amounts designated in the franchise agreement.

C.

If the security fund is drawn upon by grantor in accordance with the procedures established in this article and the franchise agreement, grantee shall cause the security fund to be replenished to the original amount no later than thirty (30) days after each withdrawal by grantor unless grantee has sought a determination from another authority as provided in grantee's franchise agreement that replenishment is not justified by the facts presented. Failure to replenish the security fund shall be deemed a material breach of the franchise. Grantor will replenish the security fund upon an arbitrator's determination that grantor erred in imposing the respective fine.

(Ord. No. 958, § 15, 10-24-95)