If, upon investigation, the governor and council shall determine that an emergency exists in such town, city or county, and that such town, city or county is unable to borrow money through the usual banking channels, upon reasonable conditions as regards payment of interest or otherwise, or is prevented by the existing laws of the state relating to borrowing by towns, cities or counties and the issuance of bonds, or is unable to place loans owing to its impaired financial condition, the governor and council are hereby authorized to issue a certificate under the seal of the state declaring the existence of such emergency and authorizing such town, city or county to issue emergency notes or bonds, in such amounts payable at such times and with such rates of interest as the governor and council may determine, and when necessary the governor and council are hereby authorized in the name of the state to guarantee the payment of said notes or bonds and the interest thereon.
Source. 1933, 63:2. 1945, 112:1, eff. April 4, 1945.