The governing body may transfer to the general fund of the city any money obtained from the levy of an assessment for a district if:
1. Bonds were issued to finance the improvement; and
2. The funds obtained by the bonds were spent for the improvement; and
3. The assessments were levied and collected for the payment of the bonds; and
4. Either the bondholders are barred by the statute of limitations or a court judgment or decree from collecting the indebtedness; or
5. The bonded indebtedness has been paid.
Added by Laws 1978, c. 233, § 14, emerg. eff. April 25, 1978.