A. No such permit shall be granted until the applicant has filed with the city manager a surety bond in the sum of two thousand five hundred dollars, conditioned for the faithful performance of all the provisions of this chapter and all other applicable ordinances of the city and laws of the state pertaining to auctions and closing-out sales, and shall also indemnify any purchaser at said public auction who suffers any loss by reason of any misrepresentation or deception made or practiced by applicant, his agents, servants or employees, either at the time of making said sale or through any advertisement of any character whatsoever printed or circulated by the principal, his agents, servants, or employees.
B. Such bond shall contain the further provisions that it inures to the benefit of any and all persons who may be damaged by reason of any failure on the part of the person or persons named therein to comply with the provisions of said bond, and that any person or persons so damaged may maintain an action thereon against the person or persons named in said bond, and the surety or sureties upon said bond, and that said bond may be sued and recovered upon in several actions until the whole penalty is exhausted.
C. In lieu of a bond executed by a surety corporation as mentioned in subsection A of this section, the applicant may file a similar bond in the amount of five thousand dollars executed by the applicant and two personal sureties. Such sureties must be residents of the county, and must own real property in the county of an assessed value of not less than the penalty of the bond, and must be worth at least the penalty of the bond over and above their just debts and liabilities, exclusive of property exempt from execution. The affidavit of each surety, setting out facts showing the qualifications of the sureties as mentioned in subsection A of this section, must accompany the bond. Such bond is subject to the approval of the city manager.