A. A statement executed by each of the merchants who are to participate in the promotional operation which shall clearly provide authorization for the Applicant to include references to their merchandise or products in the proposed merchandise coupon. Said statement shall specify an exact description of the merchandise, product, or service; the duration during which time such merchandise, product or service will be provided upon presentation of the coupon by purchaser; and the specific number of merchandise coupons authorized by such merchant to be distributed or proposed to be distributed by the Applicant.

B. The Applicant shall provide a written statement reciting specifically the form of salutation and statements or representations which will be made to prospective buyers of the merchandise coupons by the Applicant or his agents.

C. In addition to said statements, the Applicant shall provide a cash deposit or pledge of cash on a form approved by the City Attorney in the amount of $2,500. The conditions of such cash deposit or pledge shall be that the Applicant shall comply with all of the ordinances and laws of the City and the state of California regulating the sale of such coupons; that the Applicant shall not deviate from the specific authorization of the merchants involved; that the Applicant shall not deviate from the proposed statement to be used by Applicant or his agents in the sale of said coupons; and said cash deposit shall constitute security for any judgment rendered against Applicant for violation of any such ordinances, laws or representations that may be recovered by the City or any Person for damages arising out of such violations or misrepresentations made by the Applicant or his agents. Said cash deposit or pledge shall inure to the benefit of any Person who presents a coupon or certificate requesting performance of the service or delivery of merchandise as described thereon, and should the merchant or service agency fail or refuse to deliver as represented any merchandise or products or to render any service in whole or in part, or if said business is no longer in existence or the Ownership of said business may have been transferred; and said cash deposit or pledge may be used to provide the merchandise or product or service set forth in the coupon. Said cash deposit or pledge shall remain in effect for a period of at least one year from the date of the issuance of the police permit to the Applicant. (Ord. 948 § 1; prior code § 20.29).