ADELPHIA 2 - 2005 - Laserfiche WebLink

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system, the Grantor's streets and public rights-of-way will be restored to the condition existing prior to Grantee's construction work, and the facilities ofthe cable system will either be removed or abandoned in place, as may be directed by the Grantor's principal representative. Upon completion of construction to the reasonable satisfaction of Grantor, the performance bond for construction will be released. Upon completion of the construction, Grantee will provide written notice to the Grantor. Within 30 days of such notice, Grantor will release the performance bond for construction. The performance bond for construction must contain a provision that requires not less than 30-days prior written notice from the surety to the Grantor's City Clerk of any determination to cancel or not to renew the bond, or to reduce its coverage below the amount authorized by this paragraph (a). If the bond is reduced below the amount authorized by this paragraph (a), or is cancelled, or is not renewed, or if the surety becomes insolvent, then the Grantee must cease all construction work then in progress until a replacement bond, or its cash equivalent, is provided to the Grantor in compliance with the requirements of this paragraph (a). (b) Securitv Fund for Other Obligations. No later than 30 days after the effective date of this Agreement, Grantee must provide to Grantor a security fund to guarantee the Grantee's performance of its obligations under this Agreement, excluding those obligations relating to construction referenced above in paragraph ( a). The security fund will consist of a $50,000 irrevocable, replenishable Jetter of credit to the order of Grantor, and a $150,000 performance bond ("Security Instruments"). The Security Instruments will be issued by one or more nationally-recognized banks or financial institutions and will be in form and substance acceptable to the Grantor's City Attorney. As provided for in Subsection 11.2, Grantee's failure to provide or to maintain these Security Instruments during the term of this Agreement will constitute a material default and grounds for revocation, termination or forfeiture ofthis Agreement. Upon expiration ofthis Agreement, if Grantee is not then in default of its obligations, then the Security Instruments will be returned to the Grantee. The Security Instruments will be subject to and in compliance with the following requirements: I. The Security Instruments will be available to Grantor to secure and to satisfy all claims, penalties, fines, liens, fees, payments, costs, damages, or taxes due Grantor from Grantee that arise by reason of the operation or maintenance of the cable television system. 2. After the notice, hearing, and appeal requirements specified in Section II of this Agreement have been satisfied, if the Grantee fails or refuses to pay to the Grantor any amounts due under the provisions of this Agreement, the Grantor may thereafter claim against the Security Instruments the unpaid amount, plus accrued interest and penalties. 3. Within 30 days after Grantee's receipt of written notice from the Grantor that any amount has been claimed and received by the Grantor under the Security Instruments in satisfaction of any of Grantee's obligations specified above in subsection (I), the Grantee must restore the Security Instruments to the amount required by this Agreement. 4. The rights reserved to the Grantor with respect to the Security Instruments are in addition to all other rights of the Grantor under this Agreement, including Grantor's rights under the performance bond for construction referenced above in paragraph (a). 12097 -0002\680672v 19 .doc -1]- City of Santa Ana EXEClITION COPY 4/07/05