36-55.43 - Same; sale.

§ 36-55.43. Same; sale.

Refunding obligations issued as provided in § 36-55.42 may be sold orexchanged for outstanding obligations issued under this chapter and, if sold,the proceeds thereof may be applied, in addition to any other authorizedpurposes, to the purchase, redemption or payment of such outstandingobligations. Pending the application of the proceeds of any such refundingobligations, with any other available funds, to the payment of the principal,accrued interest and any redemption premium on the obligations beingrefunded, and, if so provided or permitted in the resolution authorizing theissuance of such refunding obligations or in the trust agreement securing thesame, to the payment of any interest on such refunding obligations and anyexpenses in connection with such refunding, such proceeds may be invested indirect obligations of, or obligations the principal of and the interest onwhich are unconditionally guaranteed by the United States of America, whichproceeds shall mature or which shall be subject to redemption by the holdersthereof, at the option of such holders, not later than the respective dateswhen the proceeds, together with the interest accruing thereon, will berequired for the purposes intended.

(1972, c. 830.)