No license shall be issued for a distress merchandise sale unless a bond is filed with the Director of Public Service and Safety conditioned upon the faithful observance of all the provisions of this chapter and the indemnifying of any purchaser at such sale who suffers any loss by reason of any misrepresentation made in connection with such sale, and authorizing actions thereunder by the City for the violation of any provision of this chapter and by any purchaser at such sale for damage or loss suffered by him by reason of any misrepresentation made in connection with such sale. The amount of such bond shall be determined as follows:
(a) Ten percent (10%) of the first one hundred thousand dollars ($100,000) of inventory cost of all the goods, wares and merchandise to be offered at such sale;
(b) Five percent (5%) of the next four hundred thousand dollars ($400,000); and
(c) Two percent (2%) of the balance.
Such bond shall be approved as to form by the City Law Director and as to sufficiency by the City Auditor.
(Ord. 20-72. Passed 6-5-72.)