§ 18A. Optional letter of credit  

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  • In lieu of the performance bond required under Section 18, the Company may elect to give the City a letter of credit for fifty thousand dollars ($50,000.00) issued by a bank in the metropolitan area. The letter of credit shall provide that it may be drawn upon under the same circumstances as a surety would be subject to a claim under its bond as provided in section 18 with respect to the performance bond, except that the letter of credit shall be subject to a draw without any previous demand upon, or notice to the Company. The letter of credit shall also be subject to a draw if it is effective for a limited term and is not replaced by a replacement letter of credit at least thirty (30) days before expiration. The letter of credit shall also be in a form approved by the City Attorney and shall be on file with the City Clerk and remain so until three hundred sixty-five (365) days after the expiration or termination of the franchise. (2010-Or-043, § 1, 4-16-10)