A. The board of county commissioners may, by ordinance approved by three- fourths of all the members of the board of county commissioners and irrepealable during the term of the contract and for a period not exceeding twenty-one years, contract:

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(1)     to repurchase bonds or assignable certificates authorized in Section 4- 55A-20 NMSA 1978 for construction of a street, road, bridge, walkway, overpass, underpass, pathway, alley, curb, gutter or sidewalk project with the money in the street and road improvement fund; or

(2)     to pledge the income of the street and road improvement fund to pay the interest and principal of bonds or assignable certificates when default in payment may occur by reason of nonpayment of any assessment levied for the payment of a street, road, bridge, walkway, overpass, underpass, pathway, alley, curb, gutter or sidewalk project authorized in the County Improvement District Act.

B. The county may anticipate the annual income to be received by the street and road improvement fund. The amount contracted or pledged to be expended each year as authorized in this section shall not exceed the amount that is accumulated in the street and road improvement fund.

C. The ordinance authorized in this section shall state that:

(1)     all disbursements made pursuant to the contract shall be paid solely from the street and road improvement fund and from no other source;

(2)     the obligations created by the contract are not general obligations of the county; and

(3)     the contracting parties may not look to any other fund for the performance of the contractual obligation.

D. In the event of disbursement from the street and road improvement fund pursuant to the obligations created by the contract, the county shall be subrogated for the benefit of the street and road improvement fund to all the rights and remedies of the holders of the securities upon which payment is made.