(1) If the bond anticipation notes are being issued in anticipation of bonds which constitute an indebtedness, such bond anticipation notes shall not be issued:
(a) Unless the bonds have been authorized at an election as required by section 6 of article XI of the state constitution;
(b) In a principal amount in excess of the amount of bonds authorized to be issued at such election;
(c) At a maximum net effective interest rate higher than the maximum net effective interest rate at which such bonds may be issued;
(d) Unless the proceeds of such bond anticipation notes are to be used for the same purpose for which the bonds may be issued; and
(e) Unless the principal amount of the bond anticipation note together with the outstanding principal amount of other indebtedness of the public body is within the applicable limitation on the issuance of such indebtedness by the public body, if any.
(2) When bond anticipation notes are issued in anticipation of the issuance of bonds which constitute an indebtedness and which have been authorized at an election, a principal amount of the bonds so authorized equal to the original principal amount of the bond anticipation notes issued shall be issued solely for the purpose of retiring such bond anticipation notes. If such bond anticipation notes are retired from other legally available revenues of the public bonds, said bonds in such principal amount shall not be issued unless reauthorized at an election held in accordance with the state constitution and other laws of this state.
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