Common use of Security Fund Clause in Contracts

Security Fund. Franchisee’s security fund under Section 14.410 of the Cable Law shall be in the amount of Five Thousand Dollars ($5,000) and may be in the form of cash or a irrevocable letter of credit in form and substance reasonably satisfactory to the LFA, as determined in the sole discretion of Franchisee (the “Security Fund”). The LFA may not draw on the Security Fund until thirty (30) days have passed after the LFA has provided Franchisee with written notice of its intent to make such withdrawal and the amount and the reasons therefor. In the event that the Security Fund is in the form of cash, amounts withdrawn from the Security Fund pursuant to this Section shall be replenished by Franchisee by delivering to the LFA or its designee for deposit in the Security Fund a cash amount equal to the amount so withdrawn within thirty (30) days of its receipt of notice from the LFA of the date and amount of such withdrawal. In the event the Security Deposit is in the form of a irrevocable letter of credit, Franchisee shall replenish the Security Fund by establishing a new irrevocable letter of credit within thirty (30) days of its receipt of notice from the LFA of the date and amount of such withdrawal. Within thirty (30) days of receipt of the new irrevocable letter of credit, the LFA shall return the previously issued irrevocable letter of credit to Franchisee.

Security Fund. Franchisee’s Prior to the Service Date, Franchisee shall provide to the LFA as security for the performance of its obligations under this Agreement a security fund under Section 14.410 of the Cable Law shall be in the amount of Five Thirty Thousand Dollars ($5,00030,000) and may be in cash or in the form of cash or a irrevocable letter of credit in form and substance reasonably satisfactory to the LFA, LFA or in form of a performance bond as determined provided in the sole discretion of Franchisee Cable Law (the “"Security Fund”"). The LFA may not draw on the Security Fund until thirty (30) days have passed after the LFA has provided Franchisee with written notice of its intent to make such withdrawal and the amount and the reasons therefor. In the event that the Security Fund is in the form of cash, amounts withdrawn from the Security Fund pursuant to this Section shall be replenished by Franchisee by delivering to the LFA or its designee for deposit in the Security Fund a cash amount equal to the amount so withdrawn within thirty (30) days of its receipt of notice from the LFA of the date and amount of such withdrawal. In the event the Security Deposit Fund is in the form of a irrevocable letter of credit, Franchisee shall replenish the Security Fund by establishing a new irrevocable letter of credit within thirty (30) days of its receipt of notice from the LFA of the date and amount of such withdrawal. Within thirty (30) days of receipt of the new irrevocable letter of credit, the LFA shall return the previously issued irrevocable letter of credit to Franchisee.a