(a)By ordinance adopted by the governing body at a
regular or special meeting, by vote of a majority of the members
of the governing body, any bonds issued under this article may
be refunded by the municipality without an election, subject to
the provisions concerning their payment and to any other
contractual limitations in the proceedings authorizing their
issuance or otherwise relating thereto. Any bonds issued for
refunding purposes may either be delivered in exchange for the
outstanding bonds authorized to be refunded or may be sold as
provided in this article for the sale of other bonds.
(b)No bonds may be refunded under this article unless the
holders thereof voluntarily surrender them for exchange or
payment, or unless they either mature or are callable for prior
redemption under
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(a) By ordinance adopted by the governing body at a
regular or special meeting, by vote of a majority of the members
of the governing body, any bonds issued under this article may
be refunded by the municipality without an election, subject to
the provisions concerning their payment and to any other
contractual limitations in the proceedings authorizing their
issuance or otherwise relating thereto. Any bonds issued for
refunding purposes may either be delivered in exchange for the
outstanding bonds authorized to be refunded or may be sold as
provided in this article for the sale of other bonds.
(b) No bonds may be refunded under this article unless the
holders thereof voluntarily surrender them for exchange or
payment, or unless they either mature or are callable for prior
redemption under their terms within ten (10) years from the date
of issuance of the refunding bonds. Provision shall be made for
paying the bonds within said period of time. No maturity of any
bonds refunded may be extended over fifteen (15) years. The rate
of interest on such refunding bonds shall be determined by the
authority. The principal amount of the refunding bonds may
exceed the principal amount of the refunded bonds if the
aggregate principal and interest costs of the refunding bonds do
not exceed such unaccrued costs of the bonds refunded, except to
the extent any interest on the bonds refunded in arrears or
about to become due is capitalized with the proceeds of the
refunding bonds. The principal amount of the refunding bonds may
also be less than or the same as the principal amount of the
bonds refunded so long as provision is duly and sufficiently
made for their payment.
(c) The proceeds of refunding bonds shall either be
immediately applied to the retirement of the bonds to be
refunded or be placed in escrow or in trust to be applied to the
payment of the bonds refunded upon their presentation. Any
proceeds held in escrow or in trust pending use may be invested
or reinvested in state or federal securities. The proceeds and
investments in escrow or in trust, together with any interest or
other gain to be derived from any investment, shall be in an
amount at all times sufficient as to principal, interest, any
prior redemption premium due and any charges of the escrow agent
or trustee payable therefrom, to pay the bonds refunded as they
become due at their respective maturities or due at the
designated prior redemption date upon which the authority shall
be obligated to call the refunded bonds for prior redemption.
(d) The relevant provisions pertaining to bonds generally
shall be equally applicable in the authorization and issuance of
refunding bonds, including their terms and security, the bond
resolution, trust indenture, taxes and revenues, and other
aspects of the bonds.
(e) Bonds issued pursuant to this section shall constitute
an indebtedness of the municipality within the meaning of
constitutional and statutory limitations. However, each bond
issued pursuant to this section shall recite in substance that
the bond, including interest payable thereon, is payable solely
from the revenues or special funds pledged to the payment
thereof and the bond constitutes a limited obligation of the
municipality.