The deposits made by all unsuccessful bidders shall be returned to such bidder at the completion of the auction. The deposit made by the high bidder shall be retained by the City as a guarantee that the person making such high bid will complete the purchase, and, at the opening of escrow, it shall be utilized as a part of the purchase price.
Should the high bidder not complete the purchase, the deposit shall be retained by the City of Los Angeles as liquidated damages suffered by the City for the failure to complete said purchase. Provided, however, that the City Council by two-thirds vote of all its members and for good cause shown may order the refund of all or any portion of the deposit of a person failing to complete the purchase, but the General Manager of the Department of General Services, the Board or Commission of a department having control of its own funds must first approve such refund.
SECTION HISTORY
Based on Ord. No. 56,887
Amended by: Ord. No. 92,757; Ord. No. 142,590, Eff. 12-3-71; Ord. No. 150,946, Eff. 7-17-78; Second Unnumbered Para., Ord. No. 171,496, Eff. 3-7-97.
Readopted by Ord. No. 173,281, Eff. 6-26-00, Oper-7-1-00.