(1) The finance officer is authorized to accept general obligation bonds and attached coupons of the city in payment of any part of special assessment liens, interest and penalties payable to the city, and is further authorized to accept the bonds and interest coupons in payment of the purchase price of any lands for sale by the city.

(2) Nothing contained in subsection (1) shall authorize the finance officer to pay out any funds or credit of the city for an excess of bonds or interest coupons over the payment sought to be made as provided in the preceding section.

(3) Bonds accepted under subsection (1) shall be reviewed by the finance officer only after they have been approved as to maturities by the council, it being the purpose of this subsection to limit the acceptance of bonds to such maturities as are to the advantage of the city.