§ 39:531 — Refunding bonds

Louisiana § 39:531

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

§531. Refunding bonds
A. In addition to any other authority therefor, any governmental entity is authorized
to issue refunding bonds for the purpose of refunding, readjusting, restructuring, refinancing,
extending, or unifying the whole or any part of its outstanding bonds in an amount sufficient
to provide the funds necessary to effectuate the purpose for which the refunding bonds are
being issued and to pay all costs associated therewith. Refunding bonds may be issued as
part of a multi-purpose issue.
B. Notwithstanding any general obligation debt limit established by law, general
obligation refunding bonds may be issued to refund outstanding general obligation bonds at
the same or at a lower effective rate of interest in accordance with Article VI, Section 33(A)
of the Constitution of Louisiana without the necessity of further voter approval, provided that
the term of the outstanding bonds refunded shall not be extended and the principal and
interest payments on the refunding bonds is less in each calendar year than the principal and
interest in such calendar year on the outstanding bonds being refunded.
C. Refunding bonds issued to refund any bonds other than general obligation bonds
may be secured in the same manner as the bonds being refunded or may be secured in such
other manner as may be prescribed by the governing authority of the governmental entity.
If refunding bonds issued under this Subsection are proposed to be additionally secured by
the full faith and credit of the governmental entity then they must be authorized at an election
held by the governmental entity in accordance with the requirements of the constitution and
laws of Louisiana pertaining to elections for the issuance of general obligation bonds.
D. The refunded bonds shall not be considered outstanding for the purpose of debt
limitation laws restricting the amount of bonds that may be issued by any governmental
entity.

Legislative History

Acts 2018, No. 569, §1, eff. July 1, 2018.