§ 20.08.040. Defaulted interest coupons, bonds or warrants.

A.

As among the several issues of bonds or warrants guaranteed by the fund, no preference shall exist, but defaulted interest coupons, bonds and warrants shall be purchased out of the fund in the order of their presentation. Whenever any defaulted interest coupons, bonds or warrants shall be presented to the Director of Finance and Administrative Services for purchase, if the outstanding warrants against the Local Improvement Guaranty Fund (including the amount of the coupons, bonds or warrants so presented) do not then exceed 5-percent of the outstanding bond obligations guaranteed by the fund, the Director of Finance and Administrative Services shall examine such coupons, bonds or warrants and if satisfied that the same are guaranteed by such fund he shall receive and keep such coupons, bonds or warrants, issuing his or her receipt therefor to the holder of the same, together with a warrant upon the Local Improvement Guaranty Fund in the amount thereof. Warrants so issued shall be paid from the Local Improvement Guaranty Fund in the order of their serial numbers.

B.

If at the time any defaulted interest coupons, bonds or warrants are presented for purchase the warrants upon the Local Improvement Guaranty Fund then outstanding (including the amount of the coupons, bonds or warrants so presented) shall exceed 5-percent of the outstanding bond obligations guaranteed by the fund, the Director of Finance and Administrative Services shall examine such coupons, bonds or warrants and if satisfied that the same are guaranteed by such fund he or she shall issue to the holder a presentation certificate describing such coupons, bonds or warrants and showing the date and time of the day when the same were so presented for purchase, and the name and address of the holder thereof. Such presentation certificate shall be issued and numbered serially in the order of the presentation for purchase of defaulted interest coupons, bonds or warrants by the respective holders thereof. Whenever the amount of outstanding warrants against the Local Improvement Guaranty Fund shall be retired in an amount sufficient to authorize the issuance of a warrant upon the fund for the purchase of the coupons, bonds or warrants described in any presentation certificate it shall be the duty of the Director of Finance and Administrative Services to notify the holder of such presentation certificate by mail at the address stated in the presentation certificate; and upon presentation to him of the presentation certificate, together with the coupons, bonds or warrants described therein, the Director of Finance and Administrative Services shall receive and keep such coupons, bonds or warrants, issuing his receipt therefor together with his or her warrant upon the Local Improvement Guaranty Fund covering the same. Such warrants shall be issued in the order of the serial numbers of the presentation certificates.

(Ord. 123361, § 288, 2010; Ord. 116368 § 240, 1992: Ord. 70894 § 2, 1941: Ord. 62364 § 4, 1941.)