(1) Any person holding an interest in any land sold or delinquent to any municipal improvement district shall be permitted to obtain a deed or redemption receipt, as the case may be, by payment of the amount for which the land was sold to the district, without interest, or the face of the tax for which the land is delinquent in the event it has not been sold to the district.
(2) All moneys received from any of these redemptions shall be placed in the street fund of the city and shall be used in the maintenance of the streets of the district. No funds so received by the city shall be diverted from the street fund and used for any other purposes.