(a) Instead of issuing certificates of indebtedness under section 35 of this chapter, the municipal legislative body may by ordinance issue refunding bonds to meet a deficiency arising in the municipal improvement fund if the following conditions are met:
- (1) At least one (1) of the conditions listed in section 35(b) of this chapter is met.
- (2) The amount of the deficiency is clearly established.
- (3) The liability of the municipality for the deficiency is established. However, this subdivision does not require the liability of the municipality to be established by a judgment against the municipality.
- (b) Refunding bonds issued under this section shall be issued in the manner prescribed by IC 5-1-9 . The proceeds of the bonds may be used only to discharge the liability of the municipality for the deficiency.
As added by P.L.98-1993, SEC.8.