In accordance with RCW Chapter 36.88, there is created in the office of the county treasurer a fund for the purpose of guaranteeing, to the extent of such fund, the payment of county road improvement district bonds and warrants issued to pay for any road improvement ordered in road improvement districts created by the county. This fund shall be designated the “Kitsap County Road Improvement Guaranty Fund,” and is sometimes herein referred to as the “guaranty fund.”
(Res. 409-1980 § 1, 1980)
From money available for road purposes, the county shall deposit annually in the guaranty fund such sums as may be necessary to establish and maintain a balance therein equal to at least five percent of the outstanding obligations guaranteed by the guaranty fund and shall make necessary provision in the county’s annual budget for such deposits. Whenever there shall be paid out of the guaranty fund any sum on account of principal or interest of a road improvement district bond or warrant, the county, as trustee for such funds, 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 of the assessment underlying the same, shall become part of the guaranty fund.
Money held in the guaranty fund may be invested in obligations of the government of the United States or of the state of Washington. There also shall be paid into the guaranty fund the interest received from bank deposits or government securities of such fund, as well as any surplus remaining in any local improvement fund guaranteed herein after the payment of all outstanding bonds or warrants payable primarily out of such road improvement fund.
(Res. 409-1980 § 2, 1980)
So much of the money of the guaranty fund as is necessary may be used to purchase underlying bonds or warrants guaranteed by such fund, or to purchase certificates of delinquency for general taxes on property subject to local improvement assessments, or to purchase such property at tax foreclosure sale, for the purpose of protecting the guaranty fund. Bonds and warrants shall be purchased out of the guaranty fund in the order of their presentation. The guaranty fund shall be subrogated to the rights of the county, and the county, acting on behalf of such fund, may foreclose the lien of general tax certification of delinquency and purchase the property at the foreclosure sale for the account of such fund. Whenever the governing authority of any county shall so cause a lien of general tax certificates of delinquency to be foreclosed and the property to be so purchased at a foreclosure sale, the court costs and costs of publication and expenses for clerical work and/or other expenses incidental thereto shall be chargeable to and payable from the guaranty fund. After so acquiring title to real property, a county may lease or sell and convey the same at public or private sale for such price and on such terms as may be determined by resolution of the board of county commissioners, and all proceeds resulting from such sale shall belong to and be paid into the guaranty fund.
(Res. 409-1980 § 3, 1980)
Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the county, against the guaranty fund to meet any liability accruing against it, and at the time of making its annual budget and tax levy the county shall provide from funds available for road purposes for the deposit in the guaranty fund of a sum sufficient with other resources of such fund to pay warrants so issued during the preceding fiscal year.
(Res. 409-1980 § 4, 1980)
Neither the holder nor the owner of any bond or warrants issued under the provisions of Chapter 36.88 RCW shall have any claim therefor against the county by which the same is issued, except for payment from the special assessments made for the improvement for which such bond or warrant was issued and except as against the improvement guaranty fund of the county, and the county 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 county. The remedy of the holder or owner of a bond, or warrant in case of nonpayment shall be confined to the enforcement of any assessments made in such road improvement district and to the guaranty fund. In case the bonds are guaranteed in accordance herewith a copy of RCW 36.88.240 shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder.
(Res. 409-1980 § 5, 1980)