§ 41-7-409 — Bonds; refunding procedures

The court may, upon the petition of the commissioners, authorize
them to refund a lawful indebtedness of the district now
existing or which may hereafter be incurred by taking up and
canceling all or a 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 the district, payable in a time as the court deems proper, in
an amount sufficient to retire all notes and bonds of the
district then outstanding and the unpaid accrued interest
thereon, together with an amount as the commissioners of the
district deem necessary to provide for possible future defaults
and delinquencies in the payment of assessments, and bearing
interest. For the purpose of providing funds to pay the
refunding bonds with interest thereon, the commissioners may
levy assessments against the land in the district, but not in
excess of the benefits assessed. In the alternative the
commissioners may issue 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 may, if
they desire to provide a fund to provide for possible defaults
and delinquencies in the payment of assessments, levy from year
to year assessments against the land in the district for such
purposes, but not in excess of the benefits assessed against the
same.