Chapter 3.04
LOCAL IMPROVEMENT GUARANTY FUND
Sections:
3.04.040 PURCHASE OF CERTIFICATES OF DELINQUENCY.
3.04.010 ESTABLISHED.
There is established by the city a fund for the purpose of guarantying, to the extent of fund and in the manner hereinafter provided, the payment of its local improvement bonds and warrants issued to pay for any local improvement hereafter ordered by the city. (Ord. 834 §1, 1926)
3.04.020 DESIGNATION.
Such fund shall be designated "local improvement guaranty fund", for the purpose of maintaining such fund the city shall be deemed and held to have pledged to the fund a tax credit of such city in an amount equal to five percent of the bonds or warrants hereafter so issued. The credit so pledged shall not constitute an indebtedness of the city within the meaning of any statutory or charter condition or limitations respecting indebtedness. Such pledge shall be deemed to have been made as to any local improvement district upon the delivery of the roll to the treasurer of the city for collection. Such pledged tax credits with the other resources of the fund enumerated in Section 3.04.030 shall constitute a reserve wherewith to purchase default bonds and warrants guaranteed by the fund. As among several issues of the bonds or warrants by the fund no preference shall exist, but default interest coupons, bonds and warrants shall be purchased out of the fund in the order of their presentation. (Ord. 834 §2, 1926)
3.04.030 POWER TO LEVY TAXES.
The city shall levy from time to time, as other taxes are levied, such sums as may be needed to meet the financial requirements of such guaranty fund, but not in excess of the total of the tax credits pledged herein to the guaranty fund. Whenever there shall be paid out of the guaranty fund any sum on account of the principal or interest of the local improvement bond or warrant, the city, as trustee for the fund, shall be subrogated to all the rights of the holder of the bond or interest coupon or warrant so paid, and the proceeds thereof, or the assessments underlying the same, shall be part of the guaranty fund, there shall also be paid into such guaranty fund the interest received from the bank deposits of the fund, as well as any surplus remaining in any local improvement fund guaranteed hereunder after the payment of all outstanding bonds or warrants payable primarily out of such local improvement fund. Warrants drawing interest at a rate not to exceed six percent, shall be issued as other warrants are issued by the city against such guaranty fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy, the city shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants as issued during the preceding fiscal year; provided that no warrants shall be issued against the guaranty fund in excess of the cash therein and the tax credits pledged thereto, as provided in Section 3.04.020; provided further that no taxes shall be levied for the fund in excess of the tax credits so pledged by Section 3.04.020, and that the tax levies herein directed shall be additional to, and if need be, in excess of any law, statutory and charter limitations applicable to the tax levies of the city. (Ord. 834 §3, 1926)
3.04.040 PURCHASE OF CERTIFICATES OF DELINQUENCY.
So much of the money of such guaranty fund as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments underlying bonds or warrants guaranteed by the fund, or to purchase such property at county tax foreclosure, or from the county after foreclosure, for the purpose of protecting the guaranty fund. The fund shall be subrogated to the right of the city, and the city may foreclose the lien of general tax certificates of delinquency, and purchase the property of foreclosure sale. After so acquiring title to real property, the city may lease or sell and convey the same at public or private sale for such prices and on such terms as may be determined by resolution of the city or town council or other legislative body, any provisions of law, charter, or ordinance to the contrary notwithstanding, and all proceeds resulting from such sales shall belong to and be paid into such guaranty fund. (Ord. 834 §4, 1926)
3.04.050 CLAIMS AGAINST CITY.
Neither the holder or the owner of any bond issued under the provisions of this chapter shall file any claim therefor against the city, except for the payment from the special assessments made for the improvement for which said bond was issued, and except as against the local improvement guaranty fund of the city, and the city or town 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 in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund a copy of the foregoing part 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 Section 9405 of Remington Compiled Statutes of the State of Washington. (Ord. 834 §5, 1926)