Chapter 3.32
LOCAL IMPROVEMENT
GUARANTY FUND
Sections:
3.32.010 Established – Authority.
3.32.050 Interest or surplus paid into fund.
3.32.060 Limitation of liability.
3.32.010 Established – Authority.
In accordance with Chapter 35.54 RCW, the city establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, the payment of its bonds and warrants issued to pay for any local improvement ordered in local improvement districts in the city or wholly or partly outside its corporate boundaries created subsequent to the effective date of the ordinance codified in this chapter. This fund shall be designated the “local improvement guaranty fund” and is sometimes hereinafter referred to as the “guaranty fund.” (Ord. 460 § 1.01, 1972).
3.32.020 Levy.
After the passage of the ordinance codified in this chapter, 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 guaranty fund created by this chapter, and whenever the city shall have paid out of the guaranty fund any sum on account of principal and interest on a local improvement 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, interest coupon, or warrant so paid, and the proceeds thereof, or of the underlying assessments, shall become a part of said fund. (Ord. 460 § 1.02, 1972).
3.32.030 Payments.
Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state (in pursuance of which the ordinance codified in this chapter has been passed) shall be in default, the city clerk-treasurer is authorized and directed, upon the presentation and delivery of such defaulted coupon, bond or warrant, to execute and issue, in accordance with procedure prescribed by ordinance, and deliver to the person or persons presenting the same, in the order of their presentation, and shall honor and pay, a warrant on the local improvement guaranty fund 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 said local improvement guaranty fund. (Ord. 460 § 1.03, 1972).
3.32.040 Warrant issuance.
Warrants drawing interest at a rate not to exceed six percent per year shall be issued, as other warrants are issued by the city, against the local improvement 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 so issued during the preceding fiscal year. Such warrants shall at no time exceed five percent of the outstanding obligations guaranteed by said fund. (Ord. 460 § 1.04, 1972).
3.32.050 Interest or surplus paid into fund.
The city clerk-treasurer is authorized and directed to pay into the local improvement guaranty fund all interest received from bank deposits of that fund, as well as any surplus remaining in any local improvement district fund guaranteed under state laws after payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. (Ord. 460 § 1.05, 1972).
3.32.060 Limitation of liability.
Neither the owner nor the holder of any bond, interest coupon, or warrant issued against a local improvement fund after the passage of the ordinance codified in this chapter shall have any claim therefor against the city except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against local improvement guaranty fund created by this chapter, and the city shall not be liable to any holder or owner of such bond, interest coupon, or warrant for any loss of such 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 enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are embodied in this chapter, shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder. (Ord. 460 § 1.06, 1972).