Upon certification by the city treasurer that the guaranty fund has sufficient funds currently on hand to meet all valid outstanding obligations of the guaranty fund and all obligations of the guaranty fund reasonably expected to be incurred in the near future, the city by ordinance may provide for the transfer of assets from the guaranty fund to the city’s general fund, except that the net cash of the guaranty fund may not be reduced by such transfer to an amount less than ten percent of the net outstanding obligations guaranteed by such fund.

If, at any time within five years of any transfer of assets from the guaranty fund to the general fund the net cash of the guaranty fund is reduced below ten percent of the net outstanding obligations guaranteed by the guaranty fund, the city to the extent of the amount transferred, shall pay valid claims against the guaranty fund as a general obligation of the city and shall pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the guaranty fund. (Ord. 1553-89 § 5.)