§ 34-21. Liability insurance or bond.

(a)

Urban mass transit buses shall not be operated or any license issued therefor, unless the owner has filed with the city clerk, for each vehicle operated, a liability insurance policy issued by some insurance company authorized to do business in this state, providing for the payment of any final judgment, in an amount to be established by the city council at the time of the issuance of the certificate of public convenience and necessity required by this article, for injury to or death of any one (1) person, or for injury to or death of more than one (1) person in any one (1) accident, and for the payment of any final judgment for damage to property, that may be rendered against the insured for injury, death or damage caused by or arising out of the operation of such vehicle.

(b)

In lieu of the insurance policy referred to above, the urban mass transit bus operator may deposit with the city clerk a bond of a surety company authorized to do business in the state naming the city as obligee and insuring persons who may be injured or whose property may be damaged by the operation of such vehicle, in such amounts as are established by the city council at the time of the issuance of the certificate of public convenience and necessity required by this article, on the condition that action may be brought thereon by any person so damaged against the surety company for the amount of such damage, up to the amount named therein.

(c)

The insurance policy or bond provided for in this section shall be subject to the approval of the city manager.

(d)

The policy of insurance or bond deposited pursuant to this section shall contain a clause obligating the company issuing the same to give twenty (20) days' notice in writing to the city manager before cancellation thereof. The license for the operation of such vehicle or vehicles shall expire upon the lapse or termination of such policy or bond, subject to reinstatement upon compliance with the provisions hereinabove contained, but such cancellation shall not relieve the insurance or surety company of liability for any injury happening before such cancellation becomes effective.

(Ord. No. 23539, § 15, 4-4-77)

(Ord. No. 23539, § 15, 4-4-77)