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The department shall require, as a condition prior to issuance of any encroachment permit, security in the form of cash, bond, money order, certified check or other form as deemed acceptable by the department. The security shall be provided in the amount determined to be sufficient by the director based upon the estimate of the director of the estimated cost necessary to reimburse the county for costs of repairing any damage to or restoring the county highway as a result of damage which may occur to the county highway by reason of such encroachment.

The security required in this section shall be payable to the county and shall be filed with the department prior to issuance of the encroachment permit by the department. The security shall be held in an “encroachment permit trust fund” by the County Auditor and County Treasurer. Any funds or other security deposited or held shall not be released and returned unless and until the following occurs:

A. The director provides, to the County Auditor, adequate evidence through a “notice of completion and acceptance” that the work performed under the issued encroachment permit has been completed under the terms and conditions of the issued encroachment permit and this title; or

B. The director authorizes release of the funds and deposit into the county road fund, for performance of work not performed by permittee within the time frame required under the issued encroachment permit; for work required to restore the county highway to its original condition; or for any work necessary to obtain compliance with this title. The County Auditor, upon receiving evidence from the director that the work under the issued encroachment permit is completed and accepted, shall release and return any security to the permittee on the expiration of 15 days.

The director may, at any time, require new or additional security, when adequate evidence exists, in the opinion of the director, that the amount of security originally posted by the permittee is deemed insufficient to cover costs or to adequately secure the repair or restoration of any county highway damaged as a result of the encroachment.

The director may waive the requirement for security when an encroachment permit is issued to any city, political subdivision or local agency or utility. Failure to comply with this title shall require immediate posting of security as required by this section.

Failure of the permittee to comply with this section shall be grounds for revocation of the encroachment permit. Any permittee refusing to pay any fees, costs, or charges due as required by this title shall cause the department to proceed against the security posted to collect for such fees, costs or charges. (Formerly 35.09)