§ 15-49. Letter of credit.

(a)

Within 30 days after the award or renewal of a franchise, the grantee shall deposit with the county an irrevocable letter of credit in a form satisfactory to the county attorney in the amount of $25,000.00 issued by a federally insured commercial lending institution acceptable to the county. The letter of credit shall:

(1)

Insure the grantee's compliance with the terms and conditions of this article and its franchise; and

(2)

Insure the grantee's payment of any liabilities arising out of the construction, operation or maintenance of the cable system, including the payment of liquidated damages pursuant to section 15-50.

(b)

The letter of credit shall contain the following endorsement: "At least 60 days' prior written notice shall be given to the county by the financial institution of any intention to cancel, replace, fail to renew or materially alter this letter of credit. Such notice shall be given by certified or registered mail to the county attorney."

(c)

The letter of credit may be drawn upon by the county by presentation of a sight draft on the lending institution, accompanied by a written certificate signed by the county administrator: (i) certifying that the grantee has failed to comply with this article, its franchise or any other lawful order, permit or direction of the county relating to this article or the franchise; (ii) stating the specific reasons therefor; and (iii) stating the basis for the amount being drawn.

(d)

The grantee shall agree to structure the letter of credit in such a manner so that if the county draws upon the letter of credit, the grantee will replenish the letter of credit to a minimum new balance of $75,000.00. The grantee shall ensure that the amount of credit available to the county never falls below $75,000.00, after the initial draw.

(e)

The letter of credit shall become the property of the county if the franchise is canceled by reason of the default of the grantee. The letter of credit shall be retained by the county and returned to the grantee at the expiration of the franchise if there is no outstanding default on the part of the grantee.

(f)

The rights reserved to the county with respect to the letter of credit are in addition to all other rights of the county, whether reserved by this article, a franchise or otherwise authorized by law, and no action, proceeding or right with respect to the letter of credit shall affect any other right the county has or may have.

(Code 1978, § 7-9)

(Code 1978, § 7-9)