The interim note, or notes, shall be of the form and content as provided in the basic agreement, be dated as of the date of their execution and delivery, shall be expressed to mature on a definite payment date, which date shall be the same for all interim notes issued for a particular project and not to exceed five years from the date that the first interim note with respect to a project has been issued, and interest thereon at the rates of interest therein agreed upon shall be payable at such time or times as therein agreed upon. The interim notes shall be payable by the city and without notice to the holder at any time before maturity and at any financial institution which shall be designated by the city comptroller.
The interim note, or notes, to be issued shall be made payable in the manner as provided in the basic agreement and shall contain such terms and conditions as shall be provided in such basic agreement, and such interim note, or notes, shall be limited obligations of the city, payable as to both principal thereof and interest thereon, only from the proceeds to be received from the sale of water revenue bonds of the city to be issued pursuant to the procedures provided for in Sections 2-32-770 through 2-32-840, inclusive, hereof, when and as such bonds are authorized and issued for the permanent financing of such extensions, improvements, or both or from other moneys legally available for such purpose in the water fund of the city.
The city and the holder, or holders, of the interim note, or notes, may mutually agree that the time of payment of any interim note, or notes, may be extended for a period of not to exceed two years beyond its stated maturity date, and evidence of such extension shall be noted on the face of such interim note so extended, together with the signatures of the mayor and city comptroller, and to be attested by the city clerk, and also to be signed by an authorized representative of the other parties to the basic agreement. Such basic agreement shall further indicate that the payment of principal of and interest on such interim note, or notes, for which permanent financing is being provided at that time, which must include all interim notes issued for a particular project if any are to be paid, but need not include all interim notes issued to provide temporary borrowing for other projects, shall be made simultaneously with the delivery to the purchaser of the water revenue bonds to be authorized and issued by the city.
(Prior code § 7-77)