Whenever there shall be paid out of the guaranty fund any sum on account of principal or interest of a local improvement bond or warrant, the city of Vancouver, as trustee for the fund, 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. There shall also be paid into such guaranty fund the interest received from bank deposits of the fund, as well as any surplus remaining in any local improvement fund guaranteed hereunder after the payment of all outstanding bonds or warrants payable primarily out of such local improvement fund. Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the city of Vancouver, against the guaranty fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy the city of Vancouver 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. As among the several issues of bonds or warrants guaranteed by the fund no preference shall exist, but defaulted interest coupons, bonds and warrants shall be purchased out of the fund in the order of their presentation.

So much of the money of the guaranty fund as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments, underlying bonds or warrants guaranteed by the fund or to purchase such property at county tax foreclosures or from the county after foreclosure, for the purpose of protecting the guaranty fund. Said fund shall be subrogated to the rights of the city of Vancouver, and the city of Vancouver may foreclose the lien of general tax certificates of delinquency and purchase the property at the foreclosure sale. After so acquiring title to real property, the city of Vancouver 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 city council of the city of Vancouver or other legislative body, any provisions of law, charter or ordinance to the contrary notwithstanding, and all proceeds resulting from such sales shall belong to and be paid into the guaranty fund. (Ord. 1378 § 4, 1928; Ord. M-4026 § 13, Renumbered, 10/15/2012)