§ 6-20-1217 - Refunding bonds -- Debt cancellation procedures.
6-20-1217. Refunding bonds -- Debt cancellation procedures.
(a) All refunds of school district bonds shall state on their face that they are refunding bonds, and no refunding bonds shall be issued until the debt refunded is cancelled simultaneously with the issue of the refunding bonds either:
(1) By the surrender of the bonds being refunded;
(2) If the outstanding bonds are redeemable before maturity and have been called for redemption, by the deposit of the money for their payment upon presentation, according to the terms of the call, in trust with an escrow agent designated by the Commissioner of Education, and the escrow agent shall be both the place of payment for the bonds and a bank that is a member of the Federal Deposit Insurance Corporation; or
(3) By a combination of the methods set out in subdivisions (a)(1) and (2) of this section.
(b) (1) All refunding bonds shall bear a certificate to be signed by the commissioner that the indebtedness which is refunded has been cancelled.
(2) No refunding bonds shall be valid until this certificate is signed by the commissioner and sealed with the seal of the State Board of Education.
(3) The commissioner shall:
(A) See to it that all refunded bonds are plainly marked cancelled;
(B) Keep a record of such bonds in his or her office and return the cancelled bonds to the school district board of directors that issued them; and
(C) File in the office of the county treasurer in which the bonds were originally registered a certificate showing the numbers, dates, amounts, and maturities of the bonds returned.