Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state in pursuance of which this chapter is passed shall be in default, the city clerk shall be and is authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the person or persons presenting the same, in the order of their presentation, and the treasurer shall honor and pay, a warrant on the local improvement guaranty fund in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the city clerk under the provision of this chapter shall be held for the benefit of said local improvement guaranty fund. (Ord. 5884 § 2, 2009.)