§8-20-16. Grants, loans and advances.
Any municipality is hereby empowered and authorized to accept
loans or grants and procure loans or temporary advances evidenced
by notes or other negotiable instruments issued in the manner, and
subject to the privileges and limitations, set forth with respect
to bonds authorized to be issued under the provisions of this
article, for the purpose of paying part or all of the cost of
acquisition, construction, establishment, extension or equipment of
combined systems and the construction of additions, betterments and
improvements thereto, and for the other purposes herein authorized,
from any authorized agency of the state or from the United States
of America or any federal or public agency or department of the
United States or any private agency, corporation or individual,
which loans or temporary advances, including the interest thereon,
may be repaid out of the proceeds of bonds authorized to be issued
under the provisions of this article, the revenues of the said
combined system or grants to the municipality from any agency of
the state or from the United States of America or any federal or
public agency or department of the United States or any private
agency, corporation or individual or from any combination of such
sources of payment, and to enter into the necessary contracts and
agreements to carry out the purposes hereof with any agency of the
state, the United States of America or any federal or public agency
or department of the United States, or with any private agency,
corporation or individual. Any other provisions of this article notwithstanding, interest on any loans or temporary advances may be
paid from the proceeds thereof until the maturity of the notes or
other negotiable instrument.
In no event shall any loan or temporary advance be a general
obligation of the municipality and the loans or temporary advances,
including the interest thereon, shall be paid solely from the
sources specified in this section.