If a governing body or fair board determines that an application for a permit should be granted, it shall: 1. Enter into a contract such as is prescribed by section 53-03-02; 2. Issue a permit to operate a carnival; 3. Collect such permit fees as are necessary to pay the expenses of the investigation required by this chapter; 4. Aid in policing the carnival grounds and in otherwise compensating the municipality or association interested in such amount as may be determined; and 5. Require the permittee to execute and deliver to such municipality or association a bond in a penal sum not exceeding five hundred dollars, to be approved by the governing body or fair board, conditioned for the faithful conduct of such carnival in accordance with the governing laws and ordinances, and that the same must be forfeited upon the violation of the provisions thereof.
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