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   1.   Any person engaging in peddling, soliciting or in the business of a transient merchant in the City without first obtaining a license as herein provided is in violation of this chapter. In addition to any other provision of this Code of Ordinances specifying penalties, the City hereby specifically provides for criminal penalties allowed by Iowa law for simple misdemeanors for peddling, soliciting or engaging in the business of a transient merchant in the City without a license.
   2.   No license shall be issued until the applicant has delivered to the City Clerk a cash bond for no less than $200.00 per license or $1,000.00 for an employer employing a group of five or more license applicants.
      A.   Use of Bond. The bond shall be held to indemnify and pay the City any penalties or costs incurred in the enforcement of any of the sections of this chapter, and to indemnify or reimburse any purchaser for damages recovered pursuant to a judgment of the court as a result of misrepresentation related to the goods or services sold by a licensee, provided that the action by the purchaser must be commenced within three months from the date of purchase.
      B.   Release of Bond. The balance of the bond shall be released by the City Clerk and returned to the applicant or employer upon request by the applicant or employer at any time more than four months after expiration of the license for which the cash bond was provided. Except as otherwise provided by court order, the City Clerk shall not release any bond during the pendency of any action in state or federal court seeking a judgment upon a claim eligible for payment from the bond.