(A) Whenever a surety bond to indemnify the city is required as a prerequisite to exercising the duties of any office or position, or to the issuance of any license or permit or for the exercise of any privilege, the surety on such bond shall be a corporation licensed and authorized to do business in this state as a surety company, or an individual approved by the Council as a surety.
(B) Whenever in the opinion of the Council additional surety or sureties may be needed on any bond to indemnify the city against any loss or liability, the Council may order new or additional sureties to be secured for such bond.
(C) If such new sureties or additional surety are not procured within ten days from the time such order is transmitted to the principal on the bond, the Council shall declare such bond to be void, and thereupon such principal, or assignee, shall be deemed to have surrendered the privilege or position as a condition of which the bond was required.
(‘82 Code, § 2.56.010)