Gridley Municipal Code Ch. 5.08 Bankruptcy or Liquidation Sales

A. Any person commencing or conducting a sale or sales of goods, wares, merchandise, or personal property as a result of bankruptcy or liquidation within the city shall conduct the same only in accordance with the following regulations and shall pay the license fee therefor as set forth:

B. Any person desiring a license to sell the stock of a merchant who has become bankrupt or a liquidating merchant in the city, shall pay the license of a transient merchant as defined in Section 5.04.470, but any person desiring to augment the stock in trade of such bankrupt or liquidating merchant by bringing into the city additional merchandise to sell under the bankrupt or liquidating sale, shall pay an additional license fee, for the bringing in and selling of such additional stock, of one hundred fifty dollars per day.

(Ord. 466 § 2, 1985: Ord. 153 § 1(part), 1960: Ord. 138 § 1(A), 1958).

A. Any person desiring a license under this chapter, before receiving any such license, shall furnish a surety bond in the principal sum of five thousand dollars conditioned as follows:

1. Upon the observance by the applicant of all the provisions of this chapter relating to such bankruptcy or such liquidation sale;

2. Upon the truth of all of the representations made in connection with the application for such license;

3. Upon the truth of all of the representations made in the course of any bankruptcy or liquidation sale; and

4. As a guarantee that the purchase price of any article purchased at such sale will be returned to any purchaser upon the proof that any false or misleading statement or representation has been made concerning any personal property sold or offered for sale at any such bankruptcy or liquidation sale, or where the sale is conducted.

B. The bond by its terms shall be made to inure to the benefit of any person injured or aggrieved as a result of any such sale or any purchase made thereat, and shall provide that any such injured or aggrieved person shall have a right of independent action thereon for a period of sixty days from and after the date upon which the purchase, act, statement, or representation was made which constitutes the basis of such action.

(Ord. 466 § 3, 1985: Ord 153 § 1(part), 1960: Ord. 138 § 1 (B), 1958).

Before conducting any bankruptcy or liquidation sale under any license issued pursuant to this chapter, the licensee must file with the license collector a full, true and correct inventory of all items of personal property to be offered at the sale. The license collector and the chief of police, either personally or through their representatives, shall have the right to be present as official observers, representing the city at any and all such bankruptcy liquidation sales, for the purpose of seeing that no personal property is sold thereat except as is outlined in the inventory to be filed; and such officers or their representatives shall have the power to prevent the sale of any item or items not included in the inventory.

(Ord. 466 § 4, 1985: Ord. 153 § 1(part), 1960: Ord. 138 § 1 (C), 1958).