(a) From any unencumbered balance in any fund which may be applied to the payment thereof, or
(b) By a budgetary appropriation. 2. Notwithstanding the provisions of subdivision one of this paragraph, bond anticipation notes may be redeemed, in whole or in part, prior to the sale of the bonds in anticipation of which such notes were issued, from any moneys which lawfully may be applied to the payment of such notes.
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