Capital Support for PEG Access. (A) Franchisee shall pay to Town an initial lump sum capital grant of thirty-one thousand dollars ($31,000) as capital support for PEG access equipment, payable within ninety (90) days from the execution of this Franchise Agreement. If the capital support grant payment is not made within one hundred twenty (120) days from the date of execution of this Franchise Agreement, this Franchise Agreement shall become null and void, ab initio, without notice. The Franchising Authority will distribute these funds for capital purposes and/or procure equipment in support of the PEG access programming needs of the community.
Capital Support for PEG Access. At the Town’s option, Franchisee shall collect a monthly fee from each subscriber to provide additional capital support for PEG access. The maximum fee that shall be imposed is 0.5% of Franchisee’s revenues from basic and expanded cable service, and the fee collected shall be remitted to the Town no later than thirty (30) days following the end of each calendar quarter. Franchisee shall not impose a fee to provide capital support for PEG access unless and until the Town directs Franchisee to impose a fee. The Town shall give Franchisee at least ninety (90) days’ notice before Franchisee shall begin collecting the fee. The Town shall allocate such amount to PEG capital uses exclusively. If such fee is imposed, it shall not be deemed to be "franchise fees" within the meaning of 47 U.S.C. Section 542 and such payments shall not be deemed to be (i) "payments-in-kind" or any involuntary payments chargeable against the compensation the Franchisee is to pay the Town pursuant to Section 6 hereof, or (ii) part of the compensation the Franchisee is to pay to the Town pursuant to Section 6 hereof.
