A municipality may issue, sell, and deliver bonds in an amount sufficient to pay a final judgment of a court, plus the interest and the costs and expenses connected with the judgment, if:
(1) the judgment is against the municipality or the payment of the judgment is the legal responsibility of the municipality;
(2) the judgment awards the plaintiff an amount in cash; and
(3) the municipality does not have money available to pay the amount of the judgment plus the interest and the cost and expenses connected with the judgment or decree.