In lieu of a surety bond as herein prescribed, the City Attorney may accept an agreement of indemnity executed by the applicant or permittee and accompanied by a deposit of cash in substantially the following form and manner:
1. The applicant or permittee shall deposit, and at all times maintain on deposit with the Treasurer of the City of Los Angeles, an amount in cash equivalent to the amount of the bond required by the provisions of this article;
2. The applicant or permittee, concurrently with the making of said deposit, shall execute and deliver to the Office of Finance a written agreement, which shall be subject to the approval of the City Attorney as to form and content, confirming the deposit and agreeing to indemnify the City against any loss and damage arising out of the failure on the part of the applicant or permittee faithfully to comply with the provisions of this article;
3. The City Treasurer shall have the custody of the cash deposited hereunder;
4. The Chief shall determine the fact of a default by the applicant or permittee in the performance of all of the terms and conditions of this article and the amount of all charges, costs, and expenses incurred by the City thereby provided for herein and shall order the payment thereof from the deposit. The Chief shall transmit his findings and order to the Treasurer, who shall make payment to the City for all charges, costs, and expenses incurred;
5. The agreement of indemnity herein provided for may set forth such additional terms and conditions as the City Attorney finds necessary or convenient to carry out the purposes and intent of the Los Angeles Municipal Code.