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(2) This is a continuing liability up to the full amount hereof, notwithstanding any action or recovery thereon. (3) No cancellatiQn or reduction in coverage of this policty for any reason whatsoever shall be- come effective until the expiration of twenty (20) days after written notice of such cancellation or reduction in coverage shall have been given to the Clerk of the Council of the City of Santa Ana, said period of twenty (20) days to commence to run from the date said notice is actually received in the office of the Clerk of the Council. Section 38-16. Bond in Lieu of Liability Policy. Subject to the approval of the City Attorney and the City Manager, the owner of any ambulance, motorbus, taxi- cab or automobile for hire operated under the provisions of this chapter may file a bond of a responsible and solvent corporation authorized to issue such bonds under the provisions of the State of California, containing the conditions and giving the protection required in the vehicle for hire liability policy required by Sections 38-12, 38-13, 38-1~, and 38-15, in lieu of either all or any part of the insurance coverage required by said sections. In the event of the filing of a bond under the provisions of this section, the applicable provisions of Section 38-12, 38-13, and 38-14, shall govern the furnishing of said bond and the owner filing it. Section 38-17. License-Fee To Be Paid. It shall be unlawful for any owner to drive or operate or cause or permit to be driven or operated, any ambulance, motorbus, taxicab or automobile for hire on the streets of the City of Santa Aha until he has complied with all provisions set forth in this chapter and has paid the busi- ness license tax for each vehicle for the current calendar year, as provided in Section 21-72 (41). The annual fee for a vehicle for hire shall be in the amount as provided in Section 21-72 (41); provided that, when a business license fee has already been paid on a vehicle and that vehicle is within the year, replaced by another vehicle, the unexpired portion of the license fee paid on the vehicle so replaced shall be credited to the license fee payable for the substitute vehicle. For the purposes hereof, the unexpired portion of the license fee paid on the vehicle which has been replaced shall be that portion of the annual fee which is equal to 1/12 of said fee multiplied by the number of full months remaining during the current licensing year. Whenever a vehicle li~ehsed &s a vehicle for hire is re- placed by another vehicle by the provisions of this chapter, the sum of five dollars ($5.00) transfer fee in addition to the license fee shall be paid by the owner of the vehicle. The previously issued vehicle permit or device is to be surrendered at the time the transfer is made. -15-