(a) Uses of special fund when no bonds outstanding. — When no bonds authorized by this chapter are outstanding with respect to a TIF District and the governing body of the municipality so determines, moneys in the special fund for that TIF District created pursuant to § 1707 of this title may be:

(1) Used for any of the purposes described in § 1705 of this title for which bond proceeds could be used;

(2) Accumulated for payment of debt service on bonds subsequently issued under this chapter;

(3) Used to pay or to reimburse the municipality for debt service which the municipality is obligated to pay or has paid (whether such obligation is general or limited) on bonds issued by the municipality, or any agency, department or political subdivision thereof, the proceeds of which have been used for any of the purposes specified in § 1705 of this title; or used to pay or reimburse any developer loan;

(4) Used to pay or to reimburse an issuing body for debt service which the municipality is obligated to pay (whether such obligation is general or limited) on other obligations under an agreement described in subsection (b) of this section; or

(5) Paid to the municipality to provide funds to be used for any legal purpose as may be determined by the municipality.

(b) Pledge agreement. — The municipality may pledge, by written agreement, that amounts deposited to the special fund created for the TIF District pursuant to § 1707 of this title shall be paid over to secure the payment, or reimbursement of a payment, of debt service on other obligations. Such agreement shall be between the municipality and the issuing body, and shall run to the benefit of and be enforceable on behalf of any holder, of such other obligations.

(c) Restrictions on use of special funds. — When any bonds authorized by this chapter are outstanding with respect to a TIF District and the governing body of the municipality so determines, moneys in the special fund for that TIF District created pursuant to § 1707 of this title may be used as provided in subsection (a) or (b) of this section in any fiscal year by the municipality, but only to the extent that:

(1) The amount in such special fund exceeds the unpaid debt service payable on such bonds in such fiscal year and is not restricted so as to prohibit the use of such moneys;

(2) Such use is not prohibited by the ordinance authorizing the issuance of such bonds; and

(3) To the extent not prohibited by bond or loan covenants.

(d) Compliance with charter requirements. — The issuance of general obligation bonds pursuant to this section shall comply with appropriate municipal charter requirements.

74 Del. Laws, c. 145, § 1; 81 Del. Laws, c. 24, § 2.