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SECTION 7: DEPOSITS, REFUNDS AND CREDITS <br /> A. Franchisee may require refundable deposits from Subscribers 1) with a poor credit <br /> or poor payment history, 2) who refuse to provide credit history information to Franchisee, or 3) <br /> who rent Subscriber equipment from Franchisee, so long as such deposits are applied on a non- <br /> discriminatory basis. The deposit Franchisee may charge Subscribers with poor credit or poor <br /> payment history or who refuse to provide credit information may not exceed an amount equal to <br /> an average Subscriber's monthly charge multiplied by six (6). The maximum deposit Franchisee <br /> may charge for Subscriber equipment is the cost of the equipment which Franchisee would need <br /> to purchase to replace the equipment rented to the Subscriber. <br /> B. Franchisee shall refund or credit the Subscriber for the amount of the deposit <br /> collected for equipment, which is unrelated to poor credit or poor payment history, after one year <br /> and provided the Subscriber has demonstrated good payment history during this period. <br /> Franchisee shall pay interest on deposits if required by law. <br /> C. Under Normal Operating Conditions, refund checks will be issued within the next <br /> available billing cycle following the resolution of the event giving rise to the refund, (e.g. <br /> equipment return and final bill payment). <br /> D. Credits for Cable Service will be issued no later than the Subscriber's next <br /> available billing cycle, following the determination that a credit is warranted, and the credit is <br /> approved and processed. Such approval and processing shall not be unreasonably delayed. <br /> E. Bills shall be considered paid when appropriate payment is received by <br /> Franchisee or its authorized agent. Appropriate time considerations shall be included in <br /> Franchisee's collection procedures to assure that payments due have been received before late <br /> notices or termination notices are sent. <br /> SECTION 8: RATES, FEES AND CHARGES <br /> A. Franchisee shall not, except to the extent expressly permitted by law, impose any <br /> fee or charge for Service Calls to a Subscriber's premises to perform any repair or maintenance <br /> work related to Franchisee equipment necessary to receive Cable Service, except where such <br /> problem is caused by a negligent or wrongful act of the Subscriber (including, but not limited to <br /> a situation in which the Subscriber reconnects Franchisee equipment incorrectly) or by the <br /> failure of the Subscriber to take reasonable precautions to protect Franchisee's equipment (for <br /> example, a dog chew). <br /> B. Franchisee shall provide reasonable notice to Subscribers of the possible <br /> assessment of a late fee on bills or by separate notice. <br /> C. All of Franchisee's rates and charges shall comply with applicable federal and <br /> state law. Franchisee shall maintain a complete current schedule of rates and charges for Cable <br /> Services on file with the City throughout the term of this Franchise. <br /> SECTION 9: DISCONNECTION /DENIAL OF SERVICE <br /> EVERETT 31 <br /> Seattle-3388207.8 0010932-00119 <br />