§ 32-1-1303 — Limitations upon issuance

(1) No general obligation bond or
other general obligation indebtedness may be refunded unless the holder thereof
voluntarily surrenders the same for exchange or payment or the said indebtedness
either matures or is callable for prior redemption under its terms within ten years
from the date of issuance of the refunding bonds, and provision shall have been
made in said refunding for paying the bonds or other indebtedness being refunded
within said period of time.

(2) The refunding bonds may mature at one time or from time to time but not
exceeding thirty years from the date of issuance of the refunding bonds. The
interest rates on such refunding bonds shall be determined by the board.

(3) The principal amount of the refunding bonds may exceed the principal
amount of the refunded bonds or other indebtedness being refunded if the
aggregate principal and interest costs of the refunding bonds do not exceed such
unaccrued cost of the indebtedness refunded except:

(a) To the extent any interest on the indebtedness refunded in arrears or
about to become due is capitalized with the proceeds of said refunding bonds; or

(b) To the extent necessary to capitalize and pay, with the proceeds of said
refunding bonds, the following:

(I) All costs and expenses of said refunding procedures;

(II) The amounts of the prior redemption premiums, if any, on the
indebtedness being refunded; and

(III) Any interest in arrears or about to become due and payable.

(4) The principal amount of the refunding bonds may also be less than or the
same as the principal amount of the indebtedness being refunded so long as
provision is duly and sufficiently made for the payment of the refunded bonds.

Legislative History

Source: L. 81: Entire article R&RE, p. 1609, � 1, effective July 1.