A. Defaulted special assessment bonds and interest coupons pertaining thereto shall be purchased out of the guaranty account established under HBC 3.90.260, and as between any of the several issues outstanding no preference shall exist, but they shall be purchased in the order of their presentation.

B. Whenever any sum is paid out of the guaranty account on account of principal or interest on a special assessment district bond, the borough as trustee of the fund shall be subrogated to all the rights of the holder of the bond or interest coupons so paid, and the proceeds thereof or of the underlying assessment shall become a part of the guaranty fund.

C. All interest and earnings derived from the investment of moneys in the guaranty fund shall be credited to the fund.

D. If special assessment district bonds have been issued, all moneys remaining in any special fund or in any special assessment district fund after all costs of improvements in the district, including redemption of all bonds of the district, have been paid shall also be paid into the guaranty fund.

E. If the assembly finds, after determining that the amount of the guaranty fund meets all mandatory guaranty requirements plus foreseeable future requirements, that there are excess moneys in the guaranty fund, it may authorize by ordinance transfer of the excess to the borough general fund.