Actually I've found that the AI's land-based artillery will fire at my ships if the artillery doesn't have to move off the city tile where it's sheltered in order to do so.
Which doesn't stop me from sending in an army of tanks and repurposing the captured artillery towards bombarding their former owners' surviving countrymen, but still is a nice find.
IIRC, I never actually ran a negative balance. Once it hit zero it just stayed there, even though all the "your treasury is running dangerously low" warnings still came up periodically. But yes, you could run a deficit with no penalty. The first time I played above Chieftain (i.e., at Warlord), I was surprised to find the game would automatically sell something to cover the deficit. (That's been a while; now, when I play, I'm up to Monarch, though I've had not much time for it recently.)
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