12-1664.   Same; issuance of temporary notes orno-fund warrants to financeportion of program to be paid by federal aid, when; election requirements;written commitment as to federal aid; temporary financing of federal sharefrom current funds; purpose of act; bonded debt limitations; approval of statecourt.Where any federal agency hasagreed that federal aid shall bear a percentage of the total cost of orfixed or estimatedamount of any local program by a public agency but the funds thereforwill not be made available until the local program is partly or whollycompleted and the public agency must finance all of the costs of thelocal program until the federal aid is received and the public agency isauthorized by law touse current funds or bond or usual temporary note proceeds or a fundbuilt up by levies over a period of years for such local program, suchpublic agency may, to finance the portion to be paid by federal aid, issuetemporary notesor no-fund warrants as provided herein. If an election is required toauthorize the issuance of bonds by the public agency for the whole orits share of the local program, no temporary notes or no-fund warrantsshall be issued under this act until the public agency has held anelection and been authorized to issue bonds and if bonds may be issuedwithout an election for the whole or the public agency's share of alocal program, no temporary notes or no-fund warrants shall be issueduntil the proper proceedings have been taken to initiate and authorizethe local program. In no case shall temporary notes or no-fund warrantsbe issued under the authority of this section until there is a writtencommitment as to the amount of federal aid by an authorized federalagency. Nothing in this act shall prohibit any publicagency from the temporary financing of the federal share of a localprogram from current funds if available or proceeds of bonds or usualtemporary notes where the bond issue has been or may be for the entirecost as if no federal aid were to be received. The purpose of this actas to the issuance of temporary notes or no-fund warrants is to makeunnecessary the tying up of current funds of a public agency or theissuance of bonds or the usual temporary notes, where authorized, inexcess of the public agency's share of the cost of the program. Thegoverning body of the public agency shall have full authority todetermine if temporary notes or no-fund warrants shall be issued. Nolimitations by statutes relating to bonded debt shall apply to suchtemporary notes and no-fund warrants or use of the money receivedtherefrom. No temporary notes or no-fund warrants shall be issuedpursuant to this act unless approved by the state court oftax appeals, which shall grant such approval only to theamount of the federal aid committed.

      History:   L. 1967, ch. 422, § 3; L. 1978, ch. 64, § 2; L. 1980,ch. 67, § 2;L. 2008, ch. 109, § 25; July 1.