A. Whenever there shall be paid out of the local improvement guarantee fund any sum on account of principal or interest of a local improvement bond or warrant, the city, as trustee for the fund, shall be subrogated to all of the rights of the holders or owners of the bonds or interest, coupons or warrants so paid, and the policies thereof, or the assessment underlying the same, shall become part of the guarantee fund.
B. There shall be paid into the guarantee fund any surplus remaining in any local improvement fund after the payment of all outstanding bonds or warrants so paid, and the policies thereof, or the assessment underlying the same, shall become part of the guarantee fund.
C. There shall be paid into the guarantee fund any surplus remaining in any local improvement fund after the payment of all outstanding bonds or warrants, payable out of such local improvement fund. Bonds or warrants guaranteed by such fund shall have no preference except in the order of presentation for payment. (Prior code §12-5)