§ 41-9-257 — 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 a part of its outstanding notes and bonds, as
fast as they become 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. 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, if they deem it
advisable, 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 these
purposes, but not in excess of the benefits assessed against the
same.