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It shall be unlawful for any owner or driver to drive or operate any motor bus, or cause the same to be driven or operated, and no permit for the operation thereof shall be granted, unless there is on file with the city in full force and effect at all times either:
(A) A bond of the owner of such motor bus, approved by the City Council, with a solvent and responsible surety company authorized to do business in the state, as surety, in the sum of $10,000 conditioned that the owner will pay all loss or damage that may result to persons or property from the negligent operation or defective construction of each motor bus with provision therein that such bond covers any and all busses owned, operated, leased or controlled by the insured, or from violation of the provisions of this chapter or of the laws of the state. Recovery on the bond shall be limited to $5,000 for the injury or death of one person and $10,000 for the injury or death of two or more persons in the same accident, and $500 for injury or destruction of property. Such bond shall run to the city and shall inure by its terms to the benefit of any and all persons suffering loss or damage covered thereby, and shall provide that suit may be brought thereon in any court of competent jurisdiction by any such person. The bond shall provide that there shall be a continuing liability thereon, notwithstanding any recovery thereon. If, at any time, in the judgment of the City Council, the bond is not sufficient for any reason, the City Council may require such owner to replace the bond with a policy of insurance as hereinafter provided, satisfactory to the City Council, and in default thereof may revoke such owner's permit and license; or
(B) A policy of insurance, approved by the City Council in a solvent and responsible company authorized to do an insurance business in the state, insuring the owner of each motor bus with the provision therein that such policy of insurance covers any and all buses owned, operated, leased or controlled by the insured against loss by reason of injury or damage that may result to persons or property from the negligent operation or defective construction of such motor bus, or from violation of this chapter or of the laws of the state. The policy may be limited to $5,000 for the injury or death of one person and $10,000 for the injury or death of two or more persons in the same accident, and $500 for injury or destruction of property. The policy of insurance shall guarantee the payment to any and all such persons suffering injury or damage to, person or property, of any final judgment rendered against such owner, within the limits above mentioned, irrespec-tive of the financial condition or any acts or omissions of such owner, and shall inure to the benefit of such person. If at any time, such policy of insurance shall be cancelled by the company issuing the same or the authority of such company to do business in the state shall be revoked, the City Council, shall require the owner to replace such policy with another policy or bond as provided, satisfactory to the City Council, and in default thereof, may revoke such owner's permit and license.
('86 Code, § 5.64.060) (Ord. 2015, passed - - ) Penalty, see § 1.12.010