Ordinance 512263
OJ DIYANE DO. 412
LD OODIITADOE Providing for a "Local Improvement Guaranty ?turd"
for the City of Edmonds, providing for the levy of taxes therefor
and for, disbursement therefrom.
$'HE CITY COUITOIL OF THE CITY OF EDMONDS DO 013DAIII:
SECTIOE I: There is hereby setablished for the City of
Edmonds a fund for the purpose of guaranteeing to the extent of
suoh fund and in the marrer hereinafter provided the payment of its
looal improvement bonds and warrants issued to pay for aby local
improvements ordered. Such fund shall be designated "Local Improvement
Guarantee Fund". For the purpose of maintaining the same the City
of Edmonds shall, after the creation thereof, levy from time to time
as other taxes are levied, suoh sums as may be necessary to meet
the fir_anoial requirements thereof ; provided, that such sum so levied
in any year shall not be more than sufficient to pay the outstanding
warrants on said fund and to establish therein a balance, which combi-
ned levy in any one year shall not exceed five per eent,(5%) of the
outstanding obligations thereby guaranteed.
SECTION 2: Wherever there shall be paid out of Said guarantee
fund ant sum on account of principal or interest of a local improve-
ment bond or warrant, the City of Edmonds, as trustee for the fund,
shall be subrogated to all the rights of the holder of the bond or
interest ooupon or warrant so paid,shall become part; of the guarantee
fund. There shall also be paid into said guaranty,. fund the interest
received from bank deposits of the fund, ae well as any surplus remain-
ing in any local improvement fund guaranteed hereundr fater the payme
ent,of all outstanding bonds or warrants payable primarily out of
suoh looal improvement fund. Warrants drawing interest at a rate to
not exceed six per cent shall be issued, as other warrants are issued
by the City of Edmonds, against the said guaranty turd to meet any 1
liability accruing against it; and at the time of makirg its annual
budget and tax levy the City of Edmonds shall provide for the levying
of a sum sufficient, with other resources of the fund, to pay warrants
so issued during the proveding fiscal year: PROVIDED, That such
warrants shall at no time exceed five per cent of the outstanding
bond obligation guaranteed by said fund. amorg the several issues
of bonds or warrants guaranteed by the fund no preference shall exist,
butdefaulted interest coupons, bonds and warrants shall be purchased
out ofthe fund it the order of their presentation.
SECTION 3: SO much of the money of the Local Improvement Guaranty
Funs;as is necessary may be used to purchase certificates of delinquen-
ey for general taxes on property subject to local improvement assess-
ments, underlying bonds or warrants guaranteed by the fund, or to
purchase suoh property at county tax foreclosures or from the county
after foreclosure, for the purpose of protecting the g iarar_ty fund.
Said fund shall be subrogated to the rights of the City of Edmonds,
and the oity may foreclose the lien of general tax certificates of
delinquency and purchase the property at the foreclosure sale.
Whenever the City Council of the City of Edmonds shall foreclose a
lien of general tax certificates of delinquency and purchase the
property at a foreclosure sale, the court costs and oosts of publicat-
ion and ex penses for clerical work and/or other expenses incidental
thereto, shall be chargeable to and payable from the "Local Improvement
Guaranty Fund." After so acouiring tital to real property the City may
lease or sell and convey the same at public or private sale for such
price and on such terms as may be determind by resolution of the council.,
any provisions of law, orordinarce to the contrary notwithstanding,
and all proceeds resultiorg from such sale shall belong to and be
paid into the guaranty fund.
PASSED this 7th day of June 1938.
Attest: Geo.M.aigii: F.A.FOURTELER,
Mayor.
Published thislOth day of dune 1938.
I hereby certify that the above and
foregoing is a true and correct copy
of Ordinance Eo.512 of the City of
Edmonds, Wash.
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