A town, by ordinance, may adopt a policy for the payment of claims or other obligations of the town, which are payable out of solvent funds, electing to pay such obligations by warrant or by check. However, when the applicable fund is not solvent at the time payment is ordered, a warrant shall be issued. When checks are to be used, the legislative body shall designate the qualified public depositary, upon which such checks are to be drawn, and the officers authorized or required to sign such checks. Wherever a reference is made to warrants in this title, such term shall include checks where authorized by this section.