7-6-4237. Use of bond proceeds and borrowed money. (1) Money received from borrowing may not be used for a purpose other than that for which borrowed, except that if any surplus remains after the accomplishment of the purpose for which borrowed, it must be used to redeem the municipal debt.
     (2) The authorization of a bond issue by the electors or by the governing body of a municipality where an election is not required constitutes an appropriation of the bond proceeds to the purpose for which the bonds are authorized, whether or not the purpose is included in a budget previously adopted, but warrants may not be drawn, expenditures made, or obligations incurred in excess of the appropriation except pursuant to an additional appropriation included in a regularly adopted budget.

     History: En. Sec. 7, Ch. 121, L. 1931; re-en. Sec. 5083.7, R.C.M. 1935; amd. Sec. 1, Ch. 95, L. 1957; R.C.M. 1947, 11-1408(part); amd. Sec. 26, Ch. 458, L. 1997.