If a federal or state agency, according to statute or contractual obligation, demands immediate or prompt action by the district in construction of, adding to, or repairing works of improvement, the district:

1. (1) may not defend that not enough money for the work has accumulated in the fund; and

2. (2) shall use the accumulation of money in the fund, including the proceeds of:

   1. (A) borrowing;
   2. (B) the collection of tax or assessments; or

   3. (C) both borrowing and the collection of tax or assessments;

      to discharge the obligation.

      [Pre-1995 Recodification Citation: 13-3-5-9.]

As added by P.L.1-1995, SEC.26.