Bonds — Interim financing

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  1. (a) If the issuance of bonds is authorized in accordance with the provisions of this subchapter, a municipality or county is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the municipality or the county shall determine.

  2. (b) As evidence of any indebtedness so incurred, the municipality or the county may execute and deliver its promissory note or notes and pledge to the payment thereof any revenues authorized by this subchapter to be pledged to revenue bonds and may secure the notes in the same manner as revenue bonds issued under this subchapter may be secured.

  3. (c) As the ordinance or order may provide, the notes may:

    1. (1) Bear such date or dates;

    2. (2) Mature at such time or times, not exceeding thirty-six (36) months from their respective dates;

    3. (3) Bear interest at such rate or rates;

    4. (4) Be in such form;

    5. (5) Be executed in such manner;

    6. (6) Be payable at such place or places;

    7. (7) Contain such provisions for prepayment prior to maturity; and

    8. (8) Contain such other terms, or covenants and conditions, consistent with the provisions of this subchapter, pertaining to revenue bonds and pertaining to the security, rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds and the rights of the holders or registered owners of the bonds.

  4. (d) These notes shall not be general obligations of the municipality or county but shall be special obligations, and in no event shall these notes constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation.

  5. (e) The municipality or county may use, as distinguished from pledge, any available revenues to pay or to apply to the payment of the principal of, and interest on, these notes and may use the proceeds of revenue bonds, either alone or with other available revenues, to pay the principal and interest on the notes.


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