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•? r . <br />. . .. . .. . . , . .- - _. . ,_ : . . .. ..._. _ . .. .. .... . ..:.. .. ... .. . . .. <br />SECTION VII: <br />LETTER OF CREDIT ? <br />A. Within (10) ten days after the execution of this Franchise, the GRANTEE <br />shall deposit with the Clerk of Council, City of North Oimsted, a letter of Credit in the <br />amount of ($25,000.00) twenty-five thousand dollars. The form and content of such <br />letter of Credit sha11 be first approved by the City which approvai shail not be <br />unreasonabiy withheld. The letter of Credit shall be used to insure the faithful <br />performance by the GRANTEE of all provisions of the franchise Agreement, <br />compliance with all orders permits and directions of any agency, commission, board, <br />department division or office of the City having jurisdiction over its acts or defaults <br />under this Franchise; and the payment by the GRANTEE of any claims, liens and taxes <br />due the City which arise by reason of construction, operations, or maintenance of the <br />system. <br />B. The Letter of Credit shall be maintained at ($25,000.00) twenty-five <br />thousand dollars during the entire term of this Franchise, even if amounts have to be <br />withdrawn pursuant to Subsection A or C of this Section. lf, however, no withdrawals <br />have been required to be made within twenty-four (24) months of the completion of <br />construction, the Letter of Credit requirements of this Section VII shall cease and be of <br />no further effect. <br />C. If the GRANTEE fails to pay the City any compensation within the time <br />fixed herein, or fails after thirty (30) days written notice to pay the Ciiy any taxes due <br />and unpaid, the independent consultant fee contained in Section V(13)(1), or fails to <br />repay the City within such thirty (30) days any damages, costs or expenses which the <br />City is compelled to pay by reason of the act or default of the GRANTEE in connection <br />with this Franchise, or fails after thirty (30) days written notice of such failure by the <br />City to comply with any provision of this Franchise which the City reasonably <br />determines can be remedied by demand on the Letter of Credit, the City shall notify the <br />GRANTEE of the amount and date thereof. <br />16