This law section provides an alternative method for handling the payment of assessments and the early retirement of bonds. It acts as a substitute to other specified procedures unless stated otherwise. If a proposal uses this alternative approach, it must be clearly indicated in the intention resolution.

If you own land with an assessment lien, you can pay it off early and remove the lien by making several payments to the treasurer. You need to cover any overdue principal and interest, along with accrued penalties. You'll also pay the remaining balance of the assessment for the current year, a redemption premium percentage of future payments, an admin fee set by the treasurer, and interest that has built up until the next bond call date, which must be at least 90 days out. Additionally, you'll get a credit for any reserve fund based on another section.

If you own property that's been assessed for a local improvement, you can partially pay off your assessment, removing part of the lien, by following certain steps. You must pay any past-due amounts with penalties, some of the remaining assessment in $5,000 increments, and a redemption premium related to early payment. You'll also have to cover administrative fees, interest accruing till the next bond payment, and factor in any credit from the reserve fund. Once you've paid, a new record reduces your payment amounts for future installments.

This section explains what happens when a city treasurer receives a prepayment for an assessment related to bonds. The prepayment is put into a special account, and then distributed in several ways. An administrative fee goes to the city's general fund. Any overdue amounts and penalties go into the bond's redemption fund, or a special reserve if needed. The principal due that year and the interest up to the bond's call date also go into the redemption fund. The remaining balance is used to pay off bonds early, as long as there's enough money to do so, with any accrued interest being paid from the redemption fund.

This law states that when retiring bonds, the treasurer should try to keep the proportion of remaining bonds to issued bonds the same each year. Additionally, within each year's group of bonds, the selection of which specific bonds to retire should be done randomly.

Before a city issues bonds, it must decide and declare whether it will promise to cover any shortfall in the bond fund by using city money or not. If the city chooses to cover the deficit, it can add extra security to the bonds by forming an improvement district. If it decides not to cover the shortfall, it can still choose to do so later. This decision must be stated clearly on the bonds, and if the city chooses not to guarantee funds, the bonds should be labeled 'Limited Obligation Improvement.'