§ 5-20-1-15 — Authorization for issuance of refunding obligations

Authorization for Issuance of Refunding
Obligations. (a) The authority is authorized to provide for the issuance
of refunding obligations for the purpose of refunding any obligations
then outstanding which shall have been issued under the provisions of
this chapter, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the date of redemption
of such obligations, and for any corporate purpose of the authority. The
issuance of such obligations, the maturities and other details thereof,
the rights of the holders thereof, and the rights, duties and obligations
of the authority in respect of the same shall be governed by the
provisions of this chapter which relate to the issuance of obligations,
insofar as such provisions may be appropriate therefor.
(b) Refunding obligations may be sold or exchanged for outstanding
obligations issued under this chapter and, if sold, the proceeds thereof
may be applied, in addition to any other authorized purposes, to the
purchase, redemption or payment of such outstanding obligations.
Pending the application of the proceeds of any such refunding
obligations (together with any other available funds) to the payment of
the principal, accrued interest and any redemption premium on the
obligations being refunded, or if so provided or permitted in the
resolution authorizing the issuance of such refunding obligations or in
the trust agreement securing the same to the payment of any interest on
such refunding obligations and any expenses in connection with such
refunding, such proceeds shall be invested in: (1) direct obligations of,
or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America and
agencies of the United States of America; or (2) general obligations of
the state, which shall mature or which shall be subject to redemption
by the holders thereof, at the option of such holders, not later than the
respective dates when the proceeds, together with the interest accruing
thereon, will be required for the purposes intended.
As added by Acts 1978, P.L.28, SEC.1.