5.36.040 Bond Required.
A. In each case where it appears that the applicant, or any solicitor or representative of the applicant, will or may demand, accept or receive payments or deposits of money or property in advance of final delivery or performance of services, the applicant shall, before receiving a license, deliver to the Tax Collector a cash deposit of one thousand dollars ($1,000.00), a bond to the City in the penal sum of one thousand dollars ($1,000.00) issued by a surety company authorized to do business within the State of California, or a personal surety bond satisfactory to the Tax Collector. The cash deposit or bond, as the case may be, shall remain in full force and effect and be retained for a period of ninety (90) days after the expiration of any such license or the termination of any such license or the termination of any action upon said bond or deposit of which the Tax Collector shall have been notified unless sooner released by the Tax Collector.
B. The cash depositor surety bond or personal surety bond referred to shall be conditioned upon and shall guarantee the following:
1. The applicant or person licensed will deliver the goods, wares or merchandise which they may contract or agree to sell or deliver, within the time, in the manner, and of the quality and fitness contemplated by or referred to in the contract or agreement which they may thereafter make, negotiate or solicit while operating under such license or permit;
2. Such applicant or licensee will perform the services which they or their principal shall undertake to perform pursuant to any order, agreement or contract which may be thereafter entered into, negotiated or solicited while operating or acting under such permit or license;
3. If such applicant or licensee shall fail to do or perform any of the things hereinabove in this chapter set forth, then and in such event, the applicant or licensee will return and repay to any person who may have made any advance payment or deposit upon any order or agreement, the whole of such deposit or payment within thirty (30) days after any such default and will pay therewith interest upon such deposit or payment at the rate of ten (10) percent per year from the date of receipt of the deposit or payment until the date of refund, and will pay therewith all reasonable costs, attorney’s fees and other expense which may have been incurred or suffered by the person who may have made such payment or deposit;
4. Such applicant, licensee and bondsman has made such cash deposit or such bond within the City and assumed all of the obligations thereof within the City, and has agreed to and does thereby agree to be sued thereon in the municipal court of the central judicial district of the County of Marin, State of California, or in the superior court of the State of California, in and for the County of Marin, and will accept and acknowledge the jurisdiction of such court and waive all rights to change of venue;
5. The bond shall be construed as and shall be a third party beneficiary bond or deposit and any and all persons with whom any agreement or contract may thereafter be made or from whom any order may be received, or from whom any advance payment or deposit may be received, may rely thereon, be deemed a beneficiary thereof and may sue the applicant or licensee and bondsman in the courts last abovementioned and may be heard and such suit may be tried therein. (Ord. 1062 § 14, 2022; Ord. 1030 § 2(4), 2018; Ord. 265 § 74D, 1959)