Torrance Municipal Code Art. 10 Security for Tax

228.10.1 SECURITY LIMITS.

The Director, whenever he deems it necessary to insure compliance with this Chapter, may require any person subject thereto to deposit with him such security as the Director may determine. The amount of security shall be fixed by the Director, but shall not be greater than twice the estimated quarterly liability of the person for the tax ascertained in such manner as the Director may deem proper. The total amount of security required of any person shall never be less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00). Within the limitations prescribed herein, the Director may increase or reduce the amount of security at any time.

228.10.2 BONDS.

The security shall be in the form of a bond or bonds executed by the person from whom the taxes imposed under this Chapter are required to be paid as principal, and a corporation such as mentioned in Section 1056 of the Code of Civil Procedure in this State as surety, in such form as the Director prescribes, payable to the City conditioned upon the payment of all taxes, penalties, and other obligations of the person arising under this part.

228.10.3 DEPOSITING OF BONDS.

In lieu of a bond a person, under such conditions as the Director may prescribe, may deposit with the City Treasurer an amount of lawful money equivalent to the amount of the bond or bonds or he may deposit bonds or other obligations of the United States, the State of California, or any county of this state of an actual market value not less than the amount of the bond or bonds fixed by the board.

228.10.4 SALE AND PAYMENT.

Upon receipt of a certificate of the Director setting forth the amount of a person’s delinquencies, the City Treasurer shall pay to the Director the amount so certified from the money deposited with him by the person or from the amounts received from the sale of bonds or other obligations deposited with the Treasurer by the person. Securities deposited with the Treasurer which have a prevailing market price may be sold by him for the purposes of this Section at private sale at a price not lower than the market price thereof.