§ 6.26.200. Bonds.

A.

Grantee shall obtain and maintain, at its sole cost and expense, and file with the metropolitan clerk, a corporate surety bond with a surety company authorized to do business in the State of Tennessee and found acceptable by the metropolitan attorney, in the amount of five hundred thousand dollars, both to guarantee the timely construction and full activation of grantee's system, and to secure grantee's performance of its obligations and faithful adherence to all requirements of the franchise ordinance codified in this chapter. After the first five years of the initial term, bond requirement amount shall be reduced to two hundred fifty thousand dollars. Grantee shall provide this corporate surety bond at the time of execution of a franchise agreement, as required by Section 6.26.330 of this chapter.

B.

The rights reserved to the metropolitan government with respect to the bond are in addition to all other rights of the metropolitan government, whether reserved by the franchise ordinance codified in this chapter or authorized by law; and no action, proceeding or exercise or a right with respect to such bond shall affect any other right the metropolitan government may have.

C.

The bond shall contain the following endorsement; it is hereby understood and agreed that this bond may not be canceled by the surety nor any intention not to renew by exercised by the surety until sixty days after receipt by the metropolitan government, by registered mail, of written notice of such intent.

(Ord. 94-1103 § 20, 1994)