§ 11-56-106 — Refunding with bonds of another type

(1) Subject to the
provisions of subsections (2), (3), and (4) of this section, nothing contained in this
article shall be construed as authorizing a public body to issue any obligations
constituting a debt or indebtedness for the purpose of refunding obligations which
do not constitute debt or indebtedness.

(2) Any revenue obligations of a public body may be refunded by the
issuance of general obligation refunding bonds only if the public body would be
authorized by law to issue general obligations for the purposes for which such
revenue obligations were originally issued at the time of the issuance of said
refunding bonds, whether or not the public body was so authorized at the time of
the issuance of such revenue obligations.

(3) If the issuance of general obligations for a particular purpose would be
conditioned upon their approval by the qualified electors of the public body at an
election, any general obligation refunding bonds proposed to be issued to refund
revenue obligations originally issued for such purpose may be issued only if
issuance of the refunding bonds has been approved at an election in the same
manner.

(4) If a debt limitation pertains to general obligation bonds or other general
obligations of a public body issued for a particular purpose, then no general
obligation bonds shall be issued to refund any revenue obligations issued for such
purpose in any principal amount which would cause such debt limitation to be
exceeded.

Legislative History

Source: L. 77: Entire article added, p. 587, � 1, effective July 1.