§ 93-21. Security fund.

A. 

Within 10 days after the effective date of a franchise agreement, the grantee shall deposit with the grantor and maintain on deposit through the term of this franchise, in cash, such sum as specified in the franchise agreement, as security for the payment of any fees, liquidated damages or penalties imposed under this chapter. Said sum shall be placed by the grantor in an interest-bearing account.

B. 

Within 10 days after notice to the grantee that any amount has been withdrawn from the security fund deposited pursuant to Subsection A of this section, the grantee shall pay to or deposit with the grantor a sum of money or securities sufficient to restore such security fund to the original amount as specified in the franchise agreement.

C. 

The security fund deposited pursuant to this section shall become the property of the grantor in the event that this franchise is canceled by reason of default of the grantee. The grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit with the grantor at the expiration of the term of this franchise, provided that there is then no outstanding default on the part of the grantee.

D. 

The rights reserved to the grantor with respect to the security funds are in addition to all other rights of the grantor, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such security funds shall affect any other right the grantor may have.