1.  For the purpose of paying any contractor or otherwise defraying any costs as they become due from time to time until money is available therefor from the levy and collection of assessments and any issuance of bonds, the governing body may issue interim warrants.

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2.  Any interim warrants must:

(a) Bear such date or dates;

(b) Mature in such a denomination or denominations at such time or times, or at any time upon call;

(c) Bear interest at such a rate or rates, which must not exceed by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted; and

(d) Be payable in such medium of payment at such place or places within and without the State, including but not limited to the office of the county treasurer, as the governing body may determine.

3.  Any interim warrants may be issued with privileges for registration for payment as to principal only, or as to both principal and interest, may be negotiable or nonnegotiable, may be special obligations payable from designated special assessments, any bond proceeds, and any other money designated to be available for the redemption of the interim warrants, and generally must be issued in such manner, in such form, with such recitals, terms, covenants and conditions, and with such other details, as may be provided by the governing body by ordinance.