When a bond of a local agency is mutilated or defaced the legislative body shall issue a duplicate if all of the following conditions exist:

1. (a) It appears by clear and unequivocal proof that the bond is so mutilated or defaced as to impair its value to the owner.
2. (b) There is no bad faith on the part of the owner.
3. (c) The bond is identifiable by number and description.
4. (d) The regulations, including restrictions as to time and retention for security or otherwise, prescribed by the legislative body are met.