In lieu of the surety bonds or policies of insurance required by Section 785.04, the applicant or licensee may enter into an agreement with the City, to be prepared to the satisfaction of the Law Director, that such applicant or licensee shall pay all final judgments recovered against the applicant, licensee and the driver of such taxicab or rented automobile or any of them within the limits set forth in Section 785.04(a). Such limits shall be construed, however, to limit the liability of such applicant, licensee and the driver, or any of them, only for the purpose of such agreement.
   Agreements shall be secured by the deposit by the applicant or licensee of cash or obligations of the United States Government, which shall be an amount equal to fifty percent (50%) of the amount of the bond required by Section 785.04(a). Cash or collateral so deposited shall be the property of and subject to the control of the City as trustee under the conditions of and for the purposes of the agreement. However, in case of discontinuance of the operation of taxicabs or rented automobiles or the subsequent substitution by any licensee with the consent of the City of the bonds or policies of insurance required in the preceding section in lieu of such agreement, an appraisal shall be made of all claims pending against the licensee and a sufficient amount of such cash or collateral deposited shall be retained as will guarantee the payment of such claims. The balance of the fund, from time to time, shall be returned to the licensee or his proper agent in proportion to the amount that it shall be shown upon satisfactory proof that outstanding claims have been paid or satisfied.
   In case of dispute over such appraisal or the determination of the amount to be retained by the City, the matter shall be submitted for arbitration to a judge of the Court of Common Pleas of the County, whose decision shall be binding upon all parties.
   The City shall not be obligated to pay interest upon funds so deposited, nor shall the City be entitled to the accruals upon any collateral deposited under such agreement so long as there is no default on the obligation of the licensee under such agreement.
   In the event that the applicant for a license or the renewal thereof, or any licensee thereunder shall elect to take advantage of the provisions of this section, he shall be entitled to a cancellation and release of any bond or policy of insurance theretofore furnished under the provisions of Section 785.04, and the Law Director shall cause the cancellation and releases to be executed and delivered to him. (1967 Code §117.05)