§ 5-1-5-2 — Issuance of bonds to refund outstanding bonds

(a) The governing body of any issuing body may
by ordinance provide for the issuance of bonds to refund outstanding
bonds issued at any time by such issuing body or its predecessor, and
to pay redemption premiums and costs of refunding to effect a saving
to the issuing body. Issuance of bonds to refund outstanding bonds may
also be made in order to pay or discharge all or any part of such
outstanding series or issue of bond, including any interest thereon, in
arrears or about to become due and for which sufficient funds are not
available or to modify restrictive covenants in outstanding bonds
impeding additional financing. To determine whether or not a savings
will be effected, consideration shall be given to the estimated or known
interest payable to the fixed maturities of the refunding bonds, the
interest payable on the bonds to be refunded, the costs of issuance of
the refunding bonds, including any sale discount, the redemption
premiums, if any, to be paid, and the probable earned income from the
investment of the refunding bond proceeds pending redemption of the
bonds to be refunded.
(b) The provisions of subsection (a) requiring a savings to be
effected do not apply to:
(1) the issuance of bonds to refund previously issued refunding
bonds, if the statute under which the refunding bonds are issued
expressly exempts such an issue from this savings requirement;
or
(2) the issuance of refunding bonds by a school corporation that
is an eligible school corporation under section 2.5 of this chapter.
Formerly: Acts 1973, P.L.28, SEC.1. As amended by Acts 1982,
P.L.28, SEC.2; P.L.23-1984, SEC.1; P.L.229-2011, SEC.62.