§ 11-56-104 — Purpose of refunding

(1) A refunding of outstanding obligations
of a public body may be accomplished pursuant to this article by the issuance of
bonds for refunding, paying, and discharging all or any part of such outstanding
obligations, including a portion of one or more issues of such obligations and
including any interest thereon in arrears or about to become due, and for one or
more of the following purposes:

(a) Avoiding or terminating any default in the payment of interest on or
principal of, or both interest on and principal of, said obligations;

(b) Reducing the net effective interest rate of said obligations;

(c) Reducing total interest payable over the life of the obligations, by issuing
bonds of a shorter term, or at a lower net interest cost, or having a lower net
effective interest rate;

(d) Reducing the total principal and interest payable on such obligations or
the principal and interest payable thereon in any particular year or years, or
affecting other economies;

(e) Modifying or eliminating restrictive contractual limitations appertaining
to such obligations, to the incurring of additional indebtedness or obligations, or to
any system, facility, or improvement appertaining thereto;

(f) Postponing the maturity of all or any part or portion of said obligations to
a later date, subject to the limitations in section 11-56-107;

(g) Substituting an issue of bonds for a note or notes, or other obligations,
including but not limited to any obligation issued in anticipation of the later
issuance of bonds;

(h) Any combination of the foregoing purposes specified in this subsection
(1).

(2) In making the computations necessary or appropriate pursuant to
subsection (1) of this section for a refunding transaction in which all or any portion
of the principal of or interest on the refunding bonds is to be paid from the
proceeds of such refunding bonds or the interest or other income to be derived
from the investment of such proceeds, including any refunding transaction as a part
of which special obligation refunding bonds are to be issued, only those amounts
with regard to bonds issued for refunding purposes which are to be payable by the
public body from sources other than refunding bond proceeds and the interest and
other income derived from the investment of such proceeds need to be considered.

Legislative History

Source: L. 77: Entire article added, p. 584, � 1, effective July 1.