(1) It shall be unlawful for the collector or treasurer of a municipal improvement district, or for any other subordinate officer appointed by the board of improvement, to loan or use, or to be interested in the loan or use of, any funds raised by the district.
(2) Any person violating the provisions of this section commits a felony and shall be: Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and
(3) Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.