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 Palestine
 Code of Ordinances
 Chapter 30. CABLE COMMUNICATIONS
 Article I. IN GENERAL

  § 30-9. Letter of credit.  

Latest version.

  • (a)

    Within ten days after formal execution of the contract under this chapter, the company shall establish a letter of credit for $10,000.00 with a state bank. The form and content of the letter of credit shall be approved by the city attorney. The letter of credit shall be used to ensure the faithful performance by the company of all sections of this chapter and the contract; 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 contract; and the payment by the company of any legal claims, liens and taxes due the city which arise because of the construction, operation or maintenance of the system.

    (b)

    The letter of credit shall be maintained at $10,000.00 during the entire term of the service contract, even if amounts have to be withdrawn pursuant to subsection (a) or (c) of this section.

    (c)

    If the company fails to pay to the city any compensation within the time fixed in this chapter or fails, after 15 days' notice, to pay to the city any taxes due and unpaid or fails to repay the city within 15 days any damages, costs or expenses which the city is compelled to pay because of any act or default of the company in connection with this chapter and the contract or fails, after ten days' notice of such failure by the company, to comply with any section of this chapter and the contract which the city council reasonably determines can be remedied by demand on the letter of credit, including those for which penalties are provided in section 30-19, the city council may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon such request for payment, 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 are in addition to all other rights of the city, whether reserved by this chapter, the contract or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the city may have.

(Code 1968, § 7¾-10)