(1) The department may accept general obligation bonds issued by a municipality, upon the following terms:

(a) the bond will not cause the municipality to exceed its statutory indebtedness limitation;

(b) all statutory requirements for the issuance of such bonds shall have been met prior to the issuance of the bonds; and

(c) the election authorizing the issuance of the bonds has been conducted by the date of a binding commitment unless such requirement is waived by the department.

(2) The department may accept general obligation bonds issued by county water and sewer districts upon the following terms:

(a) all statutory requirements for the issuance of such bonds shall have been met prior to the issuance of the bonds; and

(b) the election authorizing the issuance of the bonds has been conducted by the date of a binding commitment unless such requirement is waived by the department.