§ 31-25-541 — Interim warrants

The governing body, from time to time as work
proceeds in a local improvement district, may authorize the issuance of interim
warrants: For not to exceed ninety percent in value of the work theretofore done
upon estimates of the engineer of the municipality; after completion of the work
and acceptance thereof by the engineer of the municipality and by the governing
body, for one hundred percent of the value of the work so completed; and, where
improvements in the district require the acquisition of property, for an amount not
exceeding the value of the property. The warrants may be issued to a contractor to
apply at par value on the contract price for the improvements or to the owner of the
property to apply at par value on the property price. The warrants may also be
issued and sold at not less than par value in such manner as the governing body
may determine, and the proceeds may be used to apply towards payment of the
contract price and property price. Interim warrants shall bear interest from date of
issue until paid at such rate as may be fixed by the governing body. Interest
accruing on interim warrants shall be included as a cost of the improvements in the
local improvement district. Interim warrants and interest thereon shall be paid by
the issuance of or by proceeds from the sale of special improvement bonds issued
or in cash received from the payment of assessments not pledged to the payment
of the bonds or from any of such sources.

Legislative History

Source: L. 77: Entire section added, p. 1470, � 3, effective June 4.