A. 
Whenever a provision of this Code or a City ordinance or Council resolution requires that any person give a bond or other security to assure performance of any act or which is an indemnity fund to protect any person, including the City, then there may be provided, in lieu of said bond or security, any of the following securities: a cash deposit, a non-cancelable letter of credit, a negotiable time certificate or time certificate of deposit issued by a savings bank, a savings and loan investment certificate, provided that such security is to run in favor of the City or be assigned to the City and may be accepted by the City only in conformance with the provisions of the following Sections pertaining thereto.
B. 
This Section shall not apply to the requirement to furnish labor and material bonds on public works contracts, security required on public purchases, to any bond or security held to protect third persons or to improvement security required by the Subdivision Map Act unless as to any of such situations, the governing law expressly allows security provided in this Section.
C. 
The erroneous application of monies comprising or derived from any security supplies pursuant to this Section and related Sections shall not result in the personal liability of the employee making such application in the absence of his or her gross negligence, actual fraud, corruption or actual malice; and the City shall defend and indemnify such employee in the event of a court action or judgment against said employee under such circumstances.
(Prior code § 0124)
A. 
Securities provided by virtue of Section 1.16.010 are subject to the following general provisions of this Section.
B. 
An individual instrument of security must be taken for each separate obligation.
C. 
The amount of any certificate may be to the next higher 50 or 100 dollar amount over the amount of obligation required if the rules of the savings or banking institution require the certificate to be in such even amount. All of the amount is subject to the obligation of the security.
D. 
Such securities may be accepted by the City as security for the payment of any tax or fee.
E. 
Any security may be surrendered by the Management Services Director on payment to the City of the whole or part of the amount represented thereby whenever the Management Services Director has reasonable cause to believe that the value of the security is impaired and the reduction of the security to cash is in the best interest of the City.
F. 
All such securities shall be delivered to the Management Services Director for safekeeping.
G. 
With the concurrence of the Management Services Director and the written request of the head of the department or division in charge of enforcing the provision which requires the security, and when only part payment is necessary to discharge the entire probable obligation represented by any certificate, the Director may order such part paid to the City or exchanged for other security and the balance delivered to the party entitled thereto.
H. 
Nothing in this Chapter concerning such securities shall be deemed to be a waiver by the City of any amounts or rights of any kind accrued to it.
I. 
No certificate shall be of an amount more than that insured by the applicable Federal insurance agency (FDIC, FSLIC) and multiple certificates adding to more than the insured amount must be issued by different savings institutions.
J. 
The cash deposits or receipts from certificates shall be processed for payment, in whole or in part, to the purpose for which the deposit or certificate was taken, upon written order of the head of the department or division in charge of enforcing the provision which requires the security.
(Prior code § 0125)
Whenever in this Code or any resolution or ordinance of the City any permission or approval is given by the City which permission or approval may be conditioned, the permission or approval may be conditioned upon the giving of security to guarantee the carrying out of the requirements of the permission or approval or any of the conditions placed thereon.
(Prior code § 0132)