§ 24-12-34 - Refunding bonds.
SECTION 24-12-34
§ 24-12-34 Refunding bonds. – The authority is hereby authorized to provide for the issuance of revenuerefunding bonds of the authority for the purpose of refunding any bonds thenoutstanding which shall have been issued under the provisions of this chapter,including the payment of any redemption premium thereon or any interest accruedor to accrue to the date of redemption of the bonds, the cost of issuing therefunding bonds and, if deemed advisable by the authority, for the additionalpurpose of constructing improvements, extensions or enlargements of the projectin connection with which the bonds to be refunded shall have been issued. Theauthority is further authorized to provide by resolution for the issuance ofits revenue bonds for the combined purpose of (1) refunding any bonds thenoutstanding which shall have been issued under the provisions of this chapter,including the payment of any redemption premium thereon and any interestaccrued on or to accrue to the date of redemption of the bonds, and (2) payingall or any part of the cost of any additional project, and, if deemed advisableby the authority, the cost of any improvements, extensions, or enlargements.Pending the application of the proceeds of the revenue refunding bonds, withany other available funds, to the payment of the principal, accrued interestand premium of the bonds being refunded and, if so provided or permitted in theresolution authorizing the issuance of the revenue refunding bonds or in thetrust agreement securing the bonds, to the payment of any interest on therefunding bonds, the authority may invest the proceeds in direct obligationsof, or obligations the principal of and the interest on which areunconditionally guaranteed by, the United States of America which shall mature,or which shall be subject to redemption by the holder thereof at the option ofthe holder, not later than the respective dates when the proceeds, togetherwith the interest accruing thereon, will be required for the purposes intendedor, in lieu of the investments, the authority may place all or part of theproceeds in interest bearing time deposits or make other similar arrangementswith regard thereto which will assure that the proceeds, together with theinterest accruing thereon, will be available when required for the purposesintended. The issuance of the bonds, the maturities and other details thereof,the rights of the holders thereof, and the rights, duties, and obligations ofthe authority in respect of the bonds shall be governed by the provisions ofthis chapter insofar as this chapter may be applicable.