(A) Whenever the municipality shall have accumulated a surplus in its General Fund in excess of its current needs, or shall have accumulated a sinking fund for the payment of its bonds and the money in such sinking fund shall exceed the amount necessary to pay the principal and interest of any such bonds which become due during the current year, the Mayor and Council are authorized to invest such surplus in its General Fund, in excess of current needs, or such excess in its sinking funds, in any securities in which the Board of Educational Lands and Funds of the state is authorized by law to invest the educational funds of the state, including bonds and debentures issued either singly or collectively by any of the 12 federal land banks, the 12 intermediate credit banks or the 13 banks for cooperatives under the supervision of the Farm Credit Administration.
(B) When any warrant of the municipality shall have been presented for payment and the same is not paid for want of funds, the Treasurer shall, upon and under direction of the Mayor and Council, purchase and take up such registered warrant with the sinking funds in the hands of the Treasurer and hold such warrant for the benefit of the fund so invested until the same is paid in its order, as provided by law.
(2005 Code, § 1-920)