A. Whenever any bond, warrant or other short term obligation guaranteed under the provisions of the laws of the state of Washington in pursuance of which this chapter is passed shall be in default, upon the presentment and delivery of any such defaulted bond, warrant or other short-term obligation, the city treasurer shall purchase the same by executing, duly issuing and delivering a warrant drawn on the guaranty fund to the person presenting the same, and the city treasurer shall honor and pay a warrant on the guaranty fund in such amount as may be necessary to pay in full any such bond, warrant or other short-term obligation with any interest to be held for the benefit of the guaranty fund. If more than one bond, warrant or other short-term obligation is so presented, they shall be purchased in their order of presentment.

B. Whenever any interest payment guaranteed under the laws of the state of Washington in pursuance of which this chapter is passed shall be in default, upon the presentment and delivery of the defaulted interest coupon or, in the absence of coupons, proof of ownership of the bond and proof of default in the payment of interest thereon, the city treasurer shall pay such interest in the same manner as set forth in subsection A of this section for payment of bonds, warrants or other short-term obligations in default. In the absence of coupons, a certificate of the bond registrar that the interest due has not been paid shall be and is presumed to be adequate proof of default. (Ord. 1553-89 § 3.)