5.50.340 Recourse against bonds and other security.
A. The bonds and other security required by this chapter may be utilized by the city for the following purposes:
1. Reimbursement of the city by reason of a franchisee’s failure to pay the city any sums due under the terms of this chapter or a franchise;
2. Reimbursement of the city for reasonable costs borne by the city to correct franchise violations not corrected by a franchisee after due notice;
3. Monetary remedies or damages assessed against a franchisee due to default or violations of a franchise or this chapter; and
4. Any other lawful purpose.
B. In the event a franchisee has been declared to be in default by the city under BMC 5.50.280 and fails to pay the city any franchise fee, penalties, or monetary sanctions, or fails to perform any of the conditions lawfully imposed by the city, the city may thereafter foreclose against the performance bond and/or withdraw from any other security an amount sufficient to compensate the city’s damages, with interest at the maximum legal rate or 12 percent, whichever is greater. Upon such foreclosure or withdrawal, the city shall notify a franchisee in writing, by certified mail, postage prepaid, of the amount and date thereof.
C. Within 30 days after mailing notice to a franchisee that the city has foreclosed franchisee’s performance bond or that any amount has been withdrawn by the city from the other security pursuant to subsection A of this section, a franchisee shall deposit such further bond or sum of money, or other security, as the city may require, sufficient to meet the requirements of this chapter.
D. The rights reserved to the city with respect to any bond or security are in addition to all other rights of the city whether reserved by this chapter or authorized by law, and no action, proceeding, or exercise of a right with respect to any bond or other security shall constitute an election or waiver of any rights or other remedies the city may have. (Ord. 1708 § 1, 1997).