A. Within 30 days after the effective date of an initial license or renewal license, the licensee will deposit $40,000.00 into a suitable interest-bearing account established by the City, as security for compliance with the provisions of the license. The City will have the full power of withdrawal of funds from the account except that all interest accrued will be payable to the licensee on demand. No withdrawals may be made from the security fund account without the prior written approval of the City Manager.

B. Within 30 days after notice to the licensee of a withdrawal by the City from the security fund, the licensee must deposit sufficient money to restore the security fund to the original amount.

C. If the licensee fails, within ten days of a notice of intent to withdraw from the security fund, to pay to the City any amount that the City claims is due from, or to comply with any provision of the license that the City reasonably determines can be remedied by an expenditure of, the security fund, then the City may withdraw that amount, with interest and any penalties, from the security fund. The City will notify the licensee of any withdrawals.

D. The licensee will be entitled to the return of any portion of the security fund that remains at the expiration or termination of the license after the City withdraws any amount due from the licensee. Any funds that the City erroneously or wrongfully withdraws shall be returned to the licensee, with interest of one and one-half percent per month from the date of withdrawal, within 30 business days after a final determination that the withdrawal was in error or wrongful. (Ord. No. G-6034, 2015)