§ 46-15.1-17 - Refunding bonds.
SECTION 46-15.1-17
§ 46-15.1-17 Refunding bonds. – (a) The board may issue refunding bonds for the purpose of paying any of itsbonds issued hereunder at maturity or upon acceleration or redemption. Therefunding bonds may be issued in sufficient amounts to pay or provide theprincipal of the bonds being refunded, together with any redemption premiumthereon, any interest accrued or to accrue to the date of payment of the bonds,the expenses of issue of the refunding bonds, the expenses of redeeming thebonds being refunded, and such reserves for debt service or other capital orcurrent expenses from the proceeds of the refunding bonds as may be required bya trust agreement or resolution securing bonds or notes. The refunding bondsmay be issued at such time or times simultaneous with or prior to the maturity,acceleration, or redemption date of the bonds being refunded as the board maydetermine to be in the public interest.
(b) The proceeds of bonds or notes issued for the purpose ofrefunding outstanding bonds or notes may be applied, in the discretion of theboard, to the purchase, retirement at maturity, or redemption of thoseoutstanding bonds or notes either on their earliest or a subsequent redemptiondate, and may, pending that application, be placed in escrow. Any escrowedproceeds may be invested and reinvested in obligations of or guaranteed by theUnited States, or in certificates of deposit, time deposits, or repurchaseagreements fully secured or guaranteed by the state or the United States, or aninstrumentality of either, maturing at such time or times as shall beappropriate to assure the prompt payment, as to principal, interest andredemption premium, if any, of the outstanding bonds and notes to be sorefunded. The interest, income, and profits, if any, earned or realized on anyinvestment may also be applied to the payment of the outstanding bonds or notesto be so refunded. After the terms of the escrow have been fully satisfied andcarried out, any balance of the proceeds and interest, income, and profits, ifany, earned or realized on the investments thereof may be returned to the boardfor use by it in furtherance of its purposes.
(c) The issue of refunding bonds, the maturities and otherdetails thereof, the security therefor, the rights of the holders thereof, andthe rights, duties, and obligations of the board in respect of the same shallbe governed by the provisions of this chapter relating to the issue of bonds,other than refunding bonds, insofar as the provisions may be applicable, but nobonds shall be refunded to a date more than forty (40) years from the date oftheir original issue.