The city shall have the power to provide for the issuance of warrants in payment of the cost and expense of any local improvement district, such warrants to be payable out of the local improvement district special fund, such warrants to bear interest from date thereof at a rate not to exceed five percent per year, and to be redeemed, either in cash or by local improvement district bonds, authorized to be issued in the manner prescribed by general ordinance.
(Prior code § 1.48.010)
All such warrants sold by the city, or issued to any contractor and by him sold or hypothecated for a valuable consideration, shall be claims and liens against the local improvement district fund against which they are drawn prior and superior to any right, lien or claim of any surety upon any bond or bonds given to the city, by or for the contractor, to secure the performance of his contract, or to secure the payment of persons who have performed work thereon, furnished material therefor or provisions and supplies for the carrying on of the work.
(Prior code § 1.48.010)