In accordance with Chapter 141, Laws of 1923, as amended by Chapter 183, Laws Extraordinary Session 1925, as amended by Chapter 209, Laws of 1927, as amended by Chapter 109, Laws of 1933, state of Washington, the City of Mountlake Terrace hereby establishes and creates a fund for the purpose of guaranteeing to the extent of such funds, bonds, and warrants, issued against Local Improvement Districts in the City of Mountlake Terrace, subsequent to the date of taking effect of the ordinance codified in this article. This fund shall be known and designated as "Local Improvement District Guaranty Fund".
(Ord. 96 § 1, 1957)
After the passage of the ordinance codified in this article 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 article; and whenever the City of Mountlake Terrace shall have paid out of said guaranty fund, any sum on account of principal and interest on a local improvement bond or warrant hereunder guaranteed, the City of Mountlake Terrace, as trustee for such fund, shall be subrogated to all of the rights of the holder of the bond or interest coupon or warrant so paid and the proceeds thereof shall become a part of said fund.
(Ord. 96 § 2, 1957)
Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state of Washington in pursuance of which the ordinance codified in this article is passed shall be in default, the City Clerk shall be and is hereby authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the person or persons presenting the same in the order of their presentation, and the Treasurer 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 under the provisions of this article shall be held for the benefit of said Local Improvement Guaranty Fund.
(Ord. 96 § 3, 1957)
Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the City, against the said 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; provided, that such warrants shall at no time exceed five percent of the outstanding bond obligations guaranteed by said fund.
(Ord. 96 § 4, 1957)
The City Treasurer is hereby authorized and directed to pay into such Local Improvement 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 state laws after the payment of all outstanding bonds or warrants payable primarily out of such Local Improvement District Fund.
(Ord. 96 § 5, 1957)
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 article shall have any claim therefor against the City of Mountlake Terrace except for payment from the special assessments made for the improvements for which said bond or warrant was issued, and except as against the Local Improvement Guaranty Fund created by this article, and the City of Mountlake Terrace shall not be liable to any holder or owner of such bond, interest coupons, or warrant for any loss to the said 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. 96 § 6, 1957)