A. Unless otherwise provided in the franchise agreement, within 10 days after adoption of the franchise ordinance, the company shall deposit with the finance director a letter of credit from or establish a security fund in an acceptable financial institution in the amount specified in the franchise ordinance. The form and content of such letter of credit shall be approved by the city attorney. The letter of credit shall be used to insure the faithful performance by the company of all provisions of the franchise and this chapter; and compliance with all orders, permits and directions of any agency, commission, board, department, division or office of the city having jurisdiction over its acts or defaults under the franchise or this chapter, and the payment by the company of any claims, liens and taxes due the city or other governmental entities which arise by reason of the construction, operation or maintenance of the system.

B. Within 30 days after notice to it that any amount has been withdrawn by the city from the security fund pursuant to subsection (A) of this section, the company shall deposit a sum of money sufficient to restore such security fund to the original amount in the account at the time of withdrawal.

C. If the company fails, after 10 days’ notice, to pay to the city any delinquent fees, taxes or other amounts due and unpaid according to the terms of this grant of franchise; or fails to repay the city, after such 10 days’ notice, any damages, costs or expenses which the city has been compelled to pay by reason of any act or default of the company in connection with the franchise; or fails, after 45 days’ notice of such failure by the city to comply with any provision of the franchise which the city reasonably determines can be remedied by an expenditure of the security, the city may immediately withdraw the amount thereof, with interest and any penalties, from the security fund or execute upon the letter of credit, as the case may be. Upon such withdrawal, the city shall notify the company of the amount and date thereof.

D. The rights reserved to the city with respect to the letter of credit or security fund are in addition to all other rights of the city, whether reserved by the franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit or fund shall affect any other right the city may have.

E. The letter of credit shall contain the following endorsement:

It is hereby understood and agreed that this letter of credit shall not be canceled by the surety nor the intention not to renew be stated by the surety until 30 days after receipt by the City Attorney, by registered mail, of a written notice of such intention to cancel or not to renew.