Failure to make promptly payments of any taxes imposed by Grantor: Two Hundred Fifty and No/100 Dollars ($250) per day from time due until paid; and
All other material violations: Fifty and No/100 Dollars ($50) per occurrence per day for each day, or part thereof, such failure occurs or continues.
Prior to issuing a written notice of assessment pursuant to subsection (A) above, the City shall provide Franchisee fourteen (14) days’ written notice to cure the asserted default. Where Franchisee cures a default within fourteen (14) days of the mailing of such written notice, no assessment shall be made. Notwithstanding the above, the City may issue a written notice of assessment pursuant to subsection (A) above without providing a prior written opportunity to cure where the City has previously afforded the Franchisee such written opportunity within the previous ninety (90) days.
Franchisee shall not be excused from complying with any of the terms and conditions of this Agreement by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any of the terms or conditions of this Agreement.
In accordance with Section 10.27.330 of Chapter 10.27, Franchisee shall maintain a Letter of Credit of Five Hundred Thousand and No/100 Dollars ($500,000) with Chase Manhattan Bank.
Failure to deposit said Letter of Credit as required above, or the failure to maintain said Letter of Credit, in the full amount required herein, in effect during the entire term of this Agreement, and of any renewal or extension thereof, shall constitute a material breach of this Agreement.
If the Franchisee fails to make timely payment to the City or its designee of any amount due as a result of this Agreement, or of any other agreements between Franchisee and the City, or fails to make timely payment to the City of any taxes due, or fails to repay the City for damages, costs, or expenses which the City shall be compelled to pay by reason of any default of the Franchisee, or fails to comply with any provision of Chapter 10.27 or this Agreement which the City reasonably determines can be remedied by a draw on the irrevocable Letter of Credit, the City may draw upon the Letter of Credit in the amounts sufficient to repay the City, with interest and any penalties, plus costs and reasonable attorneys’ fees incurred thereby.
Within seven (7) days of drawing upon the Letter of Credit, the City shall serve written notification of the amount, date and purpose of such withdrawal or drawing on the Franchisee by certified mail, return receipt requested.
If at the time of drawing by the City, the aggregate amount realized from the Letter of Credit is insufficient to provide the total payment toward which the drawing is directed, the balance of such payment shall constitute an obligation of the Franchisee to the City until paid, at judgment rate.