Chapter 3.16
LOCAL IMPROVEMENT DISTRICT GUARANTY FUND

Sections:

3.16.010 Created—Purpose.

3.16.020 Levies.

3.16.030 Defaulted bond, coupon or warrant.

3.16.040 Warrant issuance.

3.16.050 Payment of interest and surplus.

3.16.060 Nonliability of city.

3.16.010 Created—Purpose.

In accordance with RCW 35.54, the city establishes and creates a fund for the purpose of guaranteeing to the extent of such fund, bonds, and warrants issued against local improvement districts in the city, and including warrants issued in connection with Local Improvement District No. 2. This fund shall be known and designated as the local improvement district guaranty fund. (Ord. 134 § 1, 1951).

3.16.020 Levies.

After August 15, 1951 there shall be levied, from time to time as other taxes are levied, such sums as may be necessary to meet the financial requirements of the local improvement district guaranty fund thereunder created; and whenever the city has paid out of said guaranty fund any sum on account of principal and interest on a local improvement district bond or warrant hereunder guaranteed, the city, as trustee for such fund shall be subrogated to all of the rights of the holder of the bond or warrant or interest coupon so paid and the proceeds thereof shall become a part of said fund. (Ord. 134 § 2, 1951).

3.16.030 Defaulted bond, coupon or warrant.

Whenever any interest coupon, bond or warrant guaranteed under the provisions of RCW 35.54 is in default, the city clerk/treasurer is authorized and directed upon the presentation and delivery of such defaulted bond, coupon or warrant to execute, sign and deliver to the person presenting the same, in the order of their presentation, and the clerk/treasurer to honor and pay on the local improvement district guaranty fund established by said act in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the city clerk/treasurer under the provisions of this chapter shall be held for the benefit of the local improvement district guaranty fund. (Ord. 134 § 3, 1951).

3.16.040 Warrant issuance.

Warrants drawing interest at a rate of not exceeding six percent shall be issued against the guaranty fund to meet any liability, accruing against it, and at the time of making the annual budget and tax levy of the city, the city shall provide for the levying of a sum sufficient with the other resources of the fund, to pay warrants so issued during the preceding fiscal year; provided, that such warrants shall at no time exceed five percent of the outstanding obligations guaranteed by said fund. (Ord. 134 § 4, 1951).

3.16.050 Payment of interest and surplus.

The city clerk/treasurer is authorized and directed to pay into such local improvement district guaranty fund all interest received from bank deposits of said fund, as well as any surplus remaining in any local improvement district fund guaranteed under said act after the payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. (Ord. 134 § 5, 1951).

3.16.060 Nonliability of city.

Neither the holder nor the owner of any bond or warrant issued after August 15, 1951 shall have any claim therefor against the city except for the payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement district guaranty fund created in this chapter, and the city shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city. The remedy of the holder or owner of a bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of this section shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder and the writing, printing or engraving shall be deemed sufficient compliance with the requirements of RCW 35.45.070. (Ord. 134 § 6, 1951).