1913 private laws – Ch.348 Sec.9

It shall be the duty of the treasurer of the city of Raleigh, together with the finance committee of the board of aldermen, to invest any and all moneys arising from the special tax under this act in the purchasing of said bonds at a price deemed advantageous by said city treasurer and the members of the finance committee of the board of aldermen; but in case said bonds cannot be purchased as herein provided, the said city treasurer . and the finance committee of the board of aldermen may lend said amount or any part thereof in such sums as they may deem proper for a length of time not to exceed six months prior to the maturity of said bonds, taking as security for the payment thereof and for the interest thereon mortgages in the name of the city of Raleigh on sufficient real estate in the city of Raleigh, or bonds issued under this act may be taken as collateral security for such loans. The notes or evidences of debt given for any loan under this section shall be executed to and in the name of the city-of Raleigh and shall bear interest payable at least annually, at a rate not less than the legal rate of interest at the time such loan was made. In case the treasurer of the said city and the members of the finance committee of said city shall not be able to lend any or all of said money, as directed above, they may and it shall be their duty to cause such part as they are unable to invest to be deposited in some bank in the city of Raleigh of undoubted solidity, at the best obtainable rate of interest, and any and all interest accruing from the investment of funds as above directed shall be invested in the manner above prescribed ; but any mayor or any member of the board of aldermen of the city of Raleigh who shall be personally interested, directly or indirectly, in making or securing any of said loans shall be guilty of a misdemeanor.