§ 37-7-127 — Refunding of indebtedness

The court, may, upon the petition of the commissioners authorize
them to refund any lawful indebtedness of the district now
existing or which may hereafter be incurred by taking up and
canceling all or any part of its outstanding notes and bonds, as
fast as they come due or before, if the holders thereof will
surrender the same and issue in lieu thereof new notes or bonds
of such district, payable in such longer time as the court shall
deem proper, in an amount sufficient to retire notes and bonds
of the district then outstanding and the unpaid accrued interest
thereon, together with such an amount as the commissioners of
such district may deem necessary to provide for possible future
defaults and delinquencies in the payment of assessments, and
bearing interest not exceeding seven percent (7%) per annum. For
the purpose of providing funds to pay such refunding bonds with
interest thereon, the commissioners may levy assessments against
the land in such district, but not in excess of the benefits
assessed. In the alternative the commissioners may, if they deem
it advisable, issue said refunding bonds in an amount sufficient
only to retire all notes and bonds of the district then
outstanding and the unpaid accrued interest thereon, and
delinquencies in the payment of assessments levied, from year to
year, assessments against the land in such district for such
purposes, but not in excess of the benefits assessed against the
same.