Yucaipa Municipal Code Art. XXVII Security—Letter of Credit

When approved by the city council, the letter of credit may be drawn upon by the cable administrator by presentation of a draft on sight at the lending institution accompanied by a written certificate signed by the cable administrator certifying:

Examples of the nature of the noncompliance for drawing upon the letter of credit include, but are not limited to, the following:

Franchisee agrees to structure the letter of credit in such a manner so that if the cable administrator at any time draws upon the letter of credit, the amount of available credit shall automatically increase to the extent necessary to replenish that portion of the available credit exhausted by the honoring of the city’s draft. The intent of this subsection is to make available to the city at all times a letter of credit in the amount specified in the franchise agreement.

(Ord. 205 § 3, 2001)

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 the franchise agreement, the ordinance codified in this title or authorized by law, and no action or proceeding against a letter of credit shall affect any other rights the city may have provided that if the city elects to assess liquidated damages against the franchisee, such liquidated damages shall constitute the exclusive monetary remedy available to the city; and the city shall be entitled to no other monetary damages with the exception of claims sounding in fraud or tort.

(Ord. 205 § 3, 2001)