If a sum equal to or greater than the amount assessed for benefits has already been borrowed by such municipality, at the time when such improvements are completed or assessments for benefits confirmed, and the payment of the sums so borrowed has been secured by notes or other temporary obligations of the municipality, then such notes and obligations, to an amount equal to the amount so assessed for such benefits, may be renewed from time to time as far as necessary for an additional period of five years, and all moneys paid in on such assessments during that period shall be exclusively devoted to the payment of, and shall be used to pay those notes and obligations as they mature.

If the amount so borrowed as aforesaid be less than the amount assessed, the governing body or board of such municipality may, if necessary, borrow and issue its temporary obligations for such additional sum as will, with the amount already borrowed, equal the amount assessed. The indebtedness of the municipality, in whatever form it may exist, shall, to the amount of the assessment, be paid and discharged out of the moneys paid in on such assessments, so far as they may be paid in during said period of five years. If at the expiration of said period of five years such indebtedness, so equal in amount to the benefits assessed, be not paid in full, then such governing body or board, in order to provide for its payment, shall issue the bonds of such municipality for the amount remaining unpaid, in the manner in which other bonds of the municipality are issued and executed, and all assessments received by such municipality, after said period of five years, shall go into its treasury and be used as the body or board having the control of the finances of such municipality may direct.