(a) The council is hereby authorized and empowered from time to time to borrow money upon the faith and credit of the county and to issue and sell negotiable notes therefor in an amount not to exceed three hundred thousand dollars ($300,000.00) in any one (1) fiscal year and to be known as "Montgomery County certificates of indebtedness." Such notes shall be in such denominations and shall bear such rates of interest, not exceeding six (6) per centum per annum, payable at the time of the issuance of such notes or thereafter, as may be determined by the council to be for the best interests of the county. Subject to the limitations hereinafter set forth, such notes may be issued at one time or from time to time and in such form, and may be sold in such manner, either at public or private sale, as the council of the county may by resolution determine. Such notes shall mature within not more than five (5) years from their respective dates, and such notes may be renewed from time to time, and new notes may be issued at such times, in payment thereof; provided, that all such notes and renewals thereof shall mature within five (5) years from the date of the issuance of such original notes; and, provided further, that the proceeds of the sale of such new or renewal notes shall be applied solely to the payment of the notes for the retirement of which such new or renewal notes are issued. Prior to the issuance of the notes the council shall pass a resolution reciting that, in the opinion of the council, it is deemed necessary to expend certain specific sums for certain functions of the county government for which no appropriation or an insufficient appropriation has been made in the annual appropriation resolution and that an emergency appropriation is necessary to provide for the functions, and the resolution may authorize the issuance and sale of the notes provided for herein to provide funds to meet the emergency appropriation; provided, that the amount of the notes authorized to be issued and sold in such resolution shall not exceed the amount of the emergency appropriation authorized therein.
(b) Notes and new or 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 in the county sufficient to provide funds for the payment of the principal and interest of all such notes whenever issued, as they respectively mature, in each and every year that any of such notes are outstanding. If any of such notes issued in any one (1) fiscal year, or if any such new notes issued in renewal thereof shall not have been paid within four (4) years from the date of the original notes issued in such one (1) fiscal year, the council shall include in the next annual tax levy thereafter a tax in an amount sufficient to provide for the payment of all of such notes so issued in such one (1) fiscal year or the renewals thereof to the end that such notes or any renewals thereof shall mature and be paid within not more than five (5) years from the date of the original notes as hereinbefore provided. (Mont. Co. Code 1965, § 2-107; 1933 (Sp. Sess.), ch. 12, § 2.)