(1)The sum of the principal amount of any
refunding revenue bonds may exceed the principal amount of the revenue
obligations to be refunded thereby by such amount as is useful to effect the
refunding if the sum of the aggregate principal and net interest cost of the
refunding revenue bonds for the period ending on the scheduled final maturity date
of the revenue obligations to be refunded, without regard to any redemptions that
may be made prior to such scheduled maturity date, is the same or less than the
aggregate principal and net interest cost of the revenue obligations to be refunded
for the same time period, excluding from the computation of the aggregate
principal and net interest cost of the refunding revenue bonds any interest on the
obligations to be refunded in arrear
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(1) The sum of the principal amount of any
refunding revenue bonds may exceed the principal amount of the revenue
obligations to be refunded thereby by such amount as is useful to effect the
refunding if the sum of the aggregate principal and net interest cost of the
refunding revenue bonds for the period ending on the scheduled final maturity date
of the revenue obligations to be refunded, without regard to any redemptions that
may be made prior to such scheduled maturity date, is the same or less than the
aggregate principal and net interest cost of the revenue obligations to be refunded
for the same time period, excluding from the computation of the aggregate
principal and net interest cost of the refunding revenue bonds any interest on the
obligations to be refunded in arrears or about to become due and payable which is
capitalized with the proceeds of the refunding revenue bonds and any interest on
the refunding revenue bonds which is capitalized with the proceeds of the
refunding revenue bonds. The principal amount of any general obligation refunding
bonds shall not exceed the original authorized principal amount of the general
obligations to be refunded. Except for refunding bonds where the indebtedness
refunded was incurred pursuant to subsection (3) of section 6 of article XI of the
state constitution, the principal amount of any general obligation bonds issued to
refund outstanding revenue obligations shall not exceed the outstanding principal
amount of the revenue obligations to be refunded, except to the extent that a
larger principal amount of refunding bonds is authorized at an election pursuant to
section 11-56-106 (3) or in the manner otherwise provided by law for incurring new
indebtedness.
(2) Neither the principal of nor the interest on any special obligation
refunding bonds issued in conjunction with any other refunding bonds pursuant to
this article shall be considered when making any of the computations required by
subsection (1) of this section.
(3) The principal amount of the refunding bonds may also be less than or the
same as the principal amount of the obligations being refunded, so long as
provision is duly and sufficiently made for payment in full and discharge of such
refunded obligations.
(4) As the governing body may determine, any refunding bonds issued under
this article shall:
(a) Be of a convenient denomination;
(b) Mature at such time not exceeding forty years from the date of said
bonds as determined by the governing body;
(c) Bear interest, which may be evidenced by one or more sets of coupons, at
a specified rate, payable annually or semiannually, but the first interest payment
may be for interest accruing for any other period not to exceed three years;
(d) Be made payable, both principal and interest, in lawful money of the
United States, at such place as determined by the governing body;
(e) Be negotiable in form and executed in substantially the same manner as
prescribed for other bonds of such public body.
(5) The right to redeem all or part of said refunding bonds prior to their
maturity, and the order of any such redemption, may be reserved in the ordinance or
resolution of the governing body, as the case may be, authorizing the issuance of
the bonds and, if so reserved, shall be set forth on the face of said bonds. Such
redemption may be with or without the payment of a premium not exceeding five
percent of principal, as determined by the governing body.
(6) Any ordinance or resolution authorizing, or any escrow agreement or
trust indenture or other instrument appertaining to, any refunding bonds issued
under this article may provide that each refunding bond shall recite that it is issued
under authority of this article. Such recital shall conclusively impart full compliance
with all of the provisions and limitations of this article, and all refunding bonds
issued containing such recital shall be incontestable for any cause whatsoever
after their delivery for value.