Prior to the issuance of a permit to hold an auction sale, the person securing a permit shall file with the city clerk a surety bond running to the city in the amount equal to the assessed valuation as contained on the assessor's tax receipt with surety acceptable to and approved by the city council, conditioned that the permittee, if issued a permit for an auction sale, will fully comply with all the provisions of the ordinances of the city and the statutes of the state of Idaho regulating and concerning auctions and auctioneers and will not practice or permit or allow any auctioneer to practice any fraud or deceit upon bidders or purchasers of property at any auction sale, and will pay all damages which will be sustained by any person by reason of any fraud, deceit or negligence or any other wrongful act on the part of any permittee, his agent or employee, in the conduct of any auction or in the exercise of the calling of any auctioneer. A liability insurance policy issued by an insurance company authorized to do business in the state which conforms to the above requirements may be permitted by the council in lieu of a bond. (Ord. 344, 2-7-1938; amd. Ord. 602, 10-17-1956)