The holder or owner of any local improvement district bond or warrant, or the holder or owner of any warrant issued and drawn under the provisions of this chapter, shall have no claim against the county except to the extent of the funds created and received from and by the special assessments made and levied for the improvements within any local improvement district for which bonds or warrants were issued and except to the extent of the holder's or owner's pro rata share of the local improvement guarantee fund hereby created. The county shall not be liable to any holder or owner of such bonds or warrants for any loss to the said guarantee fund occurring in the lawful operation thereof. Whenever there shall be paid out of the local improvement guarantee fund any sum on account of principal or interest of a local improvement district bond or warrant, the county, as trustee for the said guarantee fund, shall be subrogated to all the rights of the holder or owner of the bond or warrant together with interest so paid and the special assessments represented by the bond or warrant so paid shall become a part of the said guarantee fund. Any surplus remaining in any local improvement district fund after the payment of all outstanding bonds or warrants together with interest shall be paid into the said guarantee fund. All bonds or warrants guaranteed by said guarantee fund shall have no preference except in the order of presentation for payment. (Ord. 117, 8-12-1981)