Los Angeles Municipal Code Art. 5 Salvage Trust Fund

Section 5.93 Return of Cash Bond. 5.94 Failure of Depositor to Perform the Terms of the Sale.

There is hereby created within the Department of General Services of the City of Los Angeles a Fund which is known as the Salvage Trust Fund, hereinafter referred to in this article as the “Fund”. Said fund is under the direction and control of the General Manager and Purchasing Agent.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313; Ord. No. 152,427, Eff. 6-29-79.

Whenever, in connection with any sale of property no longer needed for the use of the City, the Purchasing Agent shall receive from the Purchaser any money as cash bond or guaranty to assure that the property sold will be demolished or removed or that a site shall be cleared of debris, or that any other term of the contract of sale will faithfully be performed, such money so received shall be deposited in the Salvage Trust Fund.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313.

Whenever the conditions of such sale have been fulfilled to the reasonable satisfaction of the department which issued the Request for Sale, the depositor of such money shall be entitled to a return thereof, or of the unused portion thereof, and the Purchasing Agent shall draw the necessary demand on the Salvage Trust Fund.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313.

If the depositor shall fail to perform the terms of the sale, the department which issued the Request for Sale, shall submit to the Purchasing Agent an estimate of the amount required to demolish or remove the property, to clear the site, or to do any other work undertaken to be done by the depositor, whereupon the Purchasing Agent shall issue the necessary order to have the work performed, the cost of which shall be charged against the amount deposited. The department which requested the sale shall approve the invoice, and the Purchasing Agent shall issue the demands on the Salvage Trust Fund for the payment of the costs and for the refund to the depositor of any unexpended balance.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313.

Whenever the Purchasing Agent receives, from any bidder, purchaser or person negotiating for the purchase of property, a deposit upon the purchase price thereof, the payment of which is conditional upon a final determination of the purchase price or any other contingency, such deposit shall upon its receipt, be placed in the Salvage Trust Fund. When the purchase price has been finally determined, the negotiation of the sale completed, or any other contingency resolved so as to complete the terms of the sale, the Purchasing Agent shall cause the amount of the deposit to be transferred to the proper account of the Department which had control of the property; provided, however, that when the

sales price is less than the amount deposited, the balance shall be refunded to the depositor, and the Purchasing Agent shall draw the necessary demand on the Salvage Trust Fund for the amount to be so refunded.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313.

Whenever any funds are received by the Purchasing Agent in connection with the sale or negotiation for the sale of any property, the disposition of which is not specifically covered by this or any other enactment, or in the absence of complete instructions, such funds shall be deposited in the Salvage Trust Fund pending the disposition thereof according to law.

SECTION HISTORY

Based on Ord. No. 52,230, Sec. 16. Amended by: Ord. No. 85,313.