§ 18-4-104 — Certificates of indebtedness; purposes for which authorized; interest; precedence over other claims; order of payment; current year defined

(a) When there are insufficient funds in the county
treasury to meet the current obligations of the county each
board of county commissioners may issue certificates of
indebtedness for current expenses of the county and particularly
for maintaining courts, boarding prisoners, prosecution of
criminals and salaries of county officers.
(b) With the permission of the board of county
commissioners, the county hospital, library, welfare or fair
board may issue certificates of indebtedness in cases where
there are insufficient funds in the county treasury to meet
their current obligations for the necessary expenses for
continuing the services and functions for which the boards are
responsible and the expenses of the boards during July through
November.
(c) The certificates of indebtedness shall bear interest
at not more than six percent (6%) per annum payable from the
funds of the board issuing the certificate. The total amount of
certificates issued by each of the boards shall not exceed the
following amounts in any one (1) year:
(i) For county hospitals, thirty percent (30%) of
that portion of the budget approved by the board of county
commissioners to be derived from tax levies during the current
year;
(ii) For county fairs, eighty percent (80%) of the
budget estimate of anticipated income for the year of issuance;
(iii) For county libraries, thirty percent (30%) of
the budget estimate of anticipated income for the year of
issuance;
(iv) For welfare boards, fifty percent (50%) of that
portion of the budget for general welfare and health approved by
the board of county commissioners to be derived from tax levies
during the current year.
(d) The provisions of this section do not give authority
to any of the boards to spend in excess of their total budgeted
expenditures as approved according to law.
(e) Certificates are issuable by the board of county
commissioners and by the county hospital, library, welfare or
fair boards even though there may be a balance in the cash
reserve fund of each of the boards.
(f) The certificates of indebtedness shall be payable out
of the taxes levied and collected for the current year for use
of the boards and shall be paid out of the first tax funds
available to each board. They shall state they are payable out
of the revenues of the county for the year of issuance and shall
be clearly distinguishable from county orders or warrants.
(g) When county hospital, library, welfare or fair boards
resolve to issue the certificates they shall forward to the
county treasurer a copy of the resolution, certified by the
presiding officer of the board, setting forth the number and
amount of all such certificates to be issued.
(h) The certificates of indebtedness are a first and prior
charge upon the taxes collected for the year of their issuance,
and shall be first paid out of funds in the county treasury
derived from taxes, fines or other sources of revenue collected
or paid into the county treasury during the year of issuance,
excluding sums received for delinquent taxes or fines for any
previous year.
(j) The term "current year" as used in this section means
the year commencing at twelve (12:00) noon on the preceding
first Monday of January and ending at the same hour on the first
Monday of the following January.