§ 323.03. Certificates of indebtedness.

For the purpose of postponing the issue of bonds that may be authorized by law for any purpose and for which issues provision has been made by ordinance by the council until the completion of the work for which such issue is required, the city auditor is authorized to issue from time to time, as such work progresses, to raise money to pay the estimates for the costs and expenses of such work as they may become due and payable, certificates of indebtedness of the city to an amount not to exceed in the aggregate ninety per cent of the bonds so authorized in any case. Such certificates of indebtedness shall be signed by the mayor and city auditor, each in his own hand; shall bear interest at a rate not to exceed six per cent per annum; and shall be payable on call out of the proceeds of the bonds or revenues in lieu or in anticipation of which they may be issued.

The moneys arising from the issue of certificates authorized by this section shall be applied exclusively for the purpose for which such certificates may be used, such certificates shall be first offered to the commissioners of the sinking fund of the city, and if not taken by them shall be sold by the city auditor at not less than par to the highest bidder, after the sale thereof has been advertised for a period of ten (10) days in a newspaper published and of general circulation in the city. Such sale, however, shall not take effect until approved by the city attorney. In case of failure to sell such certificates of indebtedness as herein provided, the city auditor is hereby further authorized to issue such certificate at par to the creditors of the city in payment of the estimates and claims held by them, in the discharge of which the moneys that would have arisen had such certificates sold would have been applied.

(Sec. 16.21.)