(a)  Notwithstanding any provision of § 45-12-4 to the contrary, a city or town by resolution of its city council or town council, may authorize the issue of notes of the city or town in order to pay any outstanding tax anticipation notes or other obligations of the city or town which, in the judgment of the treasurer or finance director, cannot be paid when due from property tax revenues as a result of a court order or decision which directly or indirectly delays the collection of taxes by the city or town, or which provides for the refunding of taxes previously collected, or for any other reason. Notes issued under this section are payable within a period of time, not exceeding one year, that is necessary, in the judgment of the treasurer or finance director, for the city or town to receive sufficient property tax revenue to pay them.

(b)  Notes issued under this section may be refunded or paid by the issue of other similar notes. Notes issued under this section shall be excepted from the operation of § 45-12-4 and shall not be taken into account for the purpose of determining the borrowing capacity of the city or town under that section.