After the effective date of the ordinance codified in this chapter, when any bond, warrant or coupon drawn against any local improvement fund is presented to the city for payment and there is not sufficient money in the local improvement district fund out of which to pay it, then, unless otherwise requested by the holder, payment therefor shall be made by warrant drawn against the local improvement guarantee fund. The warrant, when presented to the city treasurer for payment, if not paid, shall be registered and shall draw interest at a rate not to exceed the rate of interest provided for in the local improvement district bonds or warrants of the districts wherein there may be a default, and in no event shall the warrants after registration bear interest in excess of six percent (6%) per year. Neither the holder nor the owner of any bond or warrant issued in any local improvement district shall have any claim therefor against the city except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except against the local improvement guarantee fund herein provided, nor shall the city be liable to any holder or owner of such bond or warrant for any loss to guarantee fund which may occur in the lawful operation thereof by the city. (Ord. 115 § 4, 1949)