7-6-4603. Investment of municipal money in city or town warrants. (1) Except as provided in 7-7-4102, whenever the city or town has, under its control and in any fund, any money for which there is no immediate demand and which, in the judgment of the city or town council, it would be advantageous to invest in city or town warrants, the city or town council may direct the city treasurer or town clerk to purchase legally issued city or town general obligation warrants of the same city or town thereafter issued against funds in which there is not sufficient funds to pay such city or town warrants at the time of issuance.
     (2) (a) In case of such purchase, the city or town council shall designate the fund or funds to be invested and shall fix the amount thereof and shall also designate the city or town warrants which are to be purchased by such funds. The city or town clerk shall thereupon cause to be attached to or stamped, written, or printed upon the warrants ordered to be purchased a notice to the effect that the city or town will exercise its preference right to purchase such warrant.
     (b) The city treasurer or town clerk shall thereafter, when such city or town warrant is presented to him, purchase the same out of the proper fund as designated by the city or town council. The warrant so purchased shall be registered as other city or town warrants and bear interest as provided by law.
     (3) When the designated amounts have been invested, the city treasurer shall notify the city clerk.

     History: En. Sec. 1, Ch. 31, L. 1961; amd. Sec. 1, Ch. 10, L. 1963; amd. Sec. 2, Ch. 268, L. 1969; R.C.M. 1947, 11-1310(1); amd. Sec. 41, Ch. 252, L. 1979.