No club shall make any sales of liquor without first having obtained a license from the city. The Council may, in its discretion, issue a club license for the on-sale of liquor under and pursuant to the provisions of this section, but all definitions and regulations set forth in this subchapter shall apply.
(A) Application. Any club desiring such a license from the city shall file with the City Clerk a verified application including, but not limited to, the following information:
(1) The name of the club;
(2) The date of incorporation;
(3) The building or space in the building wherein the club rooms are maintained;
(4) The length of time that the club rooms have been maintained;
(5) Whether said club rooms are owned or leased and if leased, the name of the lessor;
(6) A description of the premises where said intoxicating liquors shall be sold;
(7) The purposes for which said club was organized and now exists;
(8) Whether or not said club has ever been convicted of any crime and if so, the nature and date thereof;
(9) The names and addresses of the present officers of the club; and,
(10) The names and addresses of the Executive Board or Committee which will be in direct charge of liquor operations.
(B) License fee. The annual license fee for a club license shall be established by resolution of the City Council.
(C) Bond and insurance. As a condition to the final granting of a club license, the applicant shall file with the City Clerk a bond with a corporate surety to be approved by the city in the sum of $5,000 or in lieu thereof cash or United States Government Bonds in such sum. In lieu of such corporate or cash bond, the applicant may file with the Clerk a liability insurance policy in the amount of $10,000 coverage for one person and $20,000 coverage for more than one person and shall specifically provide for the payment by the insurance company on behalf of said licensee of all sums which the insured shall become obligated to pay be reason of liability imposed upon him by law for injuries or damages to persons or property, including the liability imposed upon insured by reason of the Dram Shop Law, presently M.S. § 340A.801. Such liability insurance policy shall further provide that no cancellation of the same for any cause, can be made either by the insured or the insurance company without first giving ten days notice to the city in writing of intention to cancel the same, addressed to the City Clerk. The operation of such club without having on file at all times a bond or liability insurance policy shall be a violation of this section, such bond or insurance policy being an integral part of the license issued hereunder.
(D) Conditions of bond. The bond as provided for herein shall be conditioned as follows:
(1) That the licensee will obey the law relating to such licensed business;
(2) That the licensee will pay to the city when due all taxes, license fees, penalties and other charges provided by law;
(3) That in the event of any violation of the provisions of any law relating to the retail off-sale and the retail on-sale of intoxicating liquor, such bond or policy shall be forfeited to the city;
(4) That the licensee will pay to the extent of the principal amount of such bond or policy any damages for death or injury caused by or resulting from the violation of any provisions of law relating thereto, and in such cases recovery under this provision may be had from the surety on this bond, or policy, as the case may be. The amount specified in such bond or policy is declared to be a penalty, the amount recoverable to be measured by the actual damage; provided, however, that in no case shall such surety be liable for any amount in excess of the penal amount of the bond or policy and,
(5) That all such bonds or policies shall be for the benefit of the obligee and all persons suffering damages by reason of the breach of the conditions thereof. In the event of the forfeiture of any such bond or policy for violation of law, the District Court of Nobles County may forfeit the penal sum of said bond or policy, or any part thereof, to the city as obligee in such bond or policy.
('69 Code, § 4.27, Subd. 4) (Am. Ord. 650, eff. 4-13-82) Penalty, see § 10.99