(a) The council is hereby authorized and empowered to borrow upon its faith and credit such sum at any time, or from time to time, as the council may in its discretion determine, subject to the limitations hereinafter set forth, to be necessary to provide funds for the payment of the current obligations of the county, in anticipation of the collection of taxes or other current revenues, and to issue and sell notes therefor. The council is authorized and empowered to provide by resolution for the issuance of notes to bear interest at a rate not exceeding six (6) percent per annum, payable at the time of the issuance of the notes or thereafter, and the council is further authorized and empowered to provide by resolution for the issuance of renewal notes with like limitations as to interest, when the council shall deem it necessary to so provide for the payment of any such notes or renewal notes theretofore issued; provided, that all such renewal notes shall mature within the time hereinafter limited for the ultimate maturity of the notes, in renewal of which renewal notes are issued, except as hereinafter provided. Such notes shall mature not later than ninety (90) days after the expiration of the fiscal year in which the same are issued and shall not thereafter be renewable or payable by the issuance of renewal notes; except, that any such renewal notes, authorized by this section and sections 20-11 and 20-12 and issued within three (3) months prior to the expiration of any one (1) fiscal year, for the purpose of providing for the payment of notes authorized by this section and sections 20-11 and 20-12 and issued during the fiscal year, may mature at any time during the fiscal year next succeeding the fiscal year in which the original notes were issued. Before the passage of any resolution authorizing the issuance of the notes the director of finance shall submit to council a statement showing:
(1) The amount of uncollected taxes for the current fiscal year, if theretofore levied, but otherwise the amount of the tax levy for the preceding fiscal year, regardless of what part thereof shall have been collected;
(2) The estimated amount of uncollected revenue for the current fiscal year, excepting taxes;
(3) The face value of all notes issued pursuant to the authority contained in this section during the current fiscal year and which by their terms are payable within one (1) year and three (3) months from the date of their respective issuances, as herein provided.
(b) The substance of such statement by the director of finance shall be recited in the resolution, and it shall be further recited that the face value of the notes so authorized by the resolution, together with the amount of item (3) above, do not exceed in the aggregate seventy-five (75) percent of the total of items (1) and (2) above, and no funds shall be borrowed in anticipation of taxes and no notes issued therefor by the council if the face value of such notes, together with the amount of item (3) above shall exceed seventy-five (75) percent of the total of items (1) and (2) above.
(c) Such notes and renewal notes may be sold by the council at such time at public or private sale, and in such form and upon such terms as the council may determine to be for the best interest of the county; provided, that all of the limitations hereinbefore or hereinafter set forth shall be complied with; and, provided further, that such notes or renewal notes shall not be sold at less than par value, except upon a vote of a majority of the members of the council, and; provided further, that all such notes or renewal notes shall recite upon their face that they are issued pursuant to the authority and in compliance with all of the conditions and limitations contained in this section and sections 20-11 and 20-12. The proceeds of the sale of renewal notes shall be applied solely to the payment of the note for the retirement of which renewal notes are issued.
(d) Notes and renewal notes shall be and remain the obligations of the county issued upon its full faith and credit, and the entire property subject to taxation in the county shall be liable for the payment thereof and the council shall levy a tax upon all property subject to assessment by it sufficient to provide funds for the payment of the principal and interest of the notes or renewal notes as they respectively mature in each and every year that such notes or renewal notes are outstanding; provided, that the amount of the tax so levied may be reduced in any one (1) year by the amount of collected or uncollected tax revenue, which the council shall appropriate for the purpose of paying such notes as they respectively mature, and the interest thereon. (Mont. Co. Code 1965, § 2-106; 1933 (Sp. Sess.), ch. 12, § 1.)