The city is authorized to obtain, or aid in obtaining, from any department or agency of the United States or of the state of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, rents, fees or other charges, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into as authorized by this chapter; and is authorized to accept payment in such manner and form as provided therein in the event of default by a participating party, and to assign any such insurance or guarantee as security for bonds. (Prior code § 8220)