Section 11-81-120
Sale or issuance to custodian of special fund, etc., of refunding bonds.
Where the municipality has used any part of its waterworks fund or other special fund of like character for the purpose of taking up at maturity bonds or coupons representing a portion of the principal of bonds which had heretofore been issued for public improvements and which had fallen due, the provisions of Section 11-81-119 shall be construed to permit either the issuance of refunding bonds to the city or town treasurer as custodian of such fund or the sale of such bonds for the purpose of replacing in such fund all moneys of such fund so used.
(Acts 1935, No. 296, p. 719; Code 1940, T. 37, §296.)