Whenever the board shall have adopted a resolution authorizing the issuance of any series of bonds thereunder but prior to the time the bonds can be delivered the board finds it necessary to borrow money for the purpose for which the bonds were authorized, the board may, by appropriate resolutions and subject to all other provisions of Sections 861 through 889 of this title, authorize the borrowing of money in anticipation of the issuance of the bonds, and the issuance of notes of the board to evidence such borrowing. The amount so borrowed shall not exceed the principal amount of the bonds and shall not bear interest at a rate exceeding the allowable interest rate of the bonds. Such notes shall be signed in the manner prescribed by the board and shall be made payable at such times as the board may prescribe not later than five (5) years from their respective dates and may be renewed from time to time by the issuance of new notes hereunder. The proceeds of any loan made under this section shall be devoted exclusively to the purposes for which the bonds shall have been authorized and the notes and the interest thereon shall be paid with the proceeds of the bonds or any legally available funds simultaneously with the delivery of the bonds. If for any reason the bonds shall not be issued, the holder or holders of the notes shall be entitled to all rights which would have been enjoyed by the holders of the bonds had they been issued, and the notes shall be paid from the revenues provided for the payment of the bonds and shall be entitled to the benefit of all covenants, agreements and rights appearing in the resolution authorizing the bonds for the benefit of the bonds.

Added by Laws 1977, c. 24, § 2, emerg. eff. April 25, 1977. Amended by Laws 2019, c. 507, § 12, eff. July 1, 2019.