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29 <br />9.3 Reduction of Bond Amount. City may, in its sole discretion, reduce the amount of the <br />Bond. <br /> <br />9.4 Procedure to Draw on Bond. <br /> <br />(a) The parties shall follow the procedure set forth in Section 11 of this Franchise <br />regarding any draw on the Bond. <br /> <br />(b) In the event this Franchise is terminated in accordance with the procedure set forth <br />in Section 11, the City shall be entitled to collect from the Bond that amount which is <br />attributable to any damages sustained by the City as a result of said violation. <br /> <br />(c) Grantee shall be entitled to the return of the Bond, or portion thereof, as remains <br />one hundred and twenty (120) Days after the expiration of the term of the Franchise or <br />termination for violation thereof, provided the City has not notified Grantee of any actual <br />or potential damages incurred as a result of Grantee’s operations pursuant to the Franchise <br />or as a result of said violation. <br /> <br />(d) The rights reserved to the City with respect to the Bond are in addition to all other <br />rights of the City whether reserved by this Franchise or authorized by law, and no action, <br />proceeding or exercise of a right with respect to the Bond shall affect any other right the <br />City may have. <br /> <br />SECTION 10 SECURITY FUND <br /> <br />10.1 Security Fund. Within thirty (30) Days of the Effective Date, Grantee shall establish and <br />provide to the City or the Commission, on behalf of the City, as security for the faithful <br />performance by Grantee of all provisions of this Franchise, an irrevocable letter of credit from a <br />financial institution satisfactory to the City or the Commission in the amount of Twenty-Five <br />Thousand and No/100 Dollars ($25,000.00) (“Security Fund”). Failure to post the Security Fund <br />shall constitute a material violation of this Franchise. The Security Fund shall serve as security for <br />the faithful performance by Grantee of all the provisions of this Franchise and compliance with all <br />orders, permits and directions of the City and the payment by Grantee of any claim, liens, costs, <br />expenses and taxes due the City which arise by reason of the construction, operation or <br />maintenance of the Cable System. The obligation to establish the Security Fund required by this <br />paragraph is unconditional. If Grantee fails to establish the Security Fund as required, the City may <br />take whatever action is appropriate to require the establishment of that Security Fund and may <br />recover its costs, reasonable attorneys’ fees, and an additional penalty of Five Thousand Dollars <br />($5,000) in that action. <br /> <br />10.2 Withdrawal of Funds. The Security Fund shall permit the City to withdraw funds upon <br />demand (sight draft). Grantee shall not use the Security Fund for other purposes and shall not <br />assign, pledge or otherwise use this Security Fund as security for any other purpose. <br /> <br />10.3 Liquidated Damages. Subject to Section 10.5 and 10.11, in addition to recovery of any <br />monies owed by Grantee to City or damages to City as a result of any acts or omissions by Grantee <br />pursuant to the Franchise, City in its sole discretion may charge to and collect from the Security <br />Fund the following liquidated damages: