61-3-53 - Refunding bonds.
§ 61-3-53. Refunding bonds.
Any authority, authorized by a statute other than this chapter to refund its outstanding bonds and permitted to do so by the terms of any resolutions and trust agreements pertaining to such bonds, may refund all, or any part of, one or more bond issues. However, the refunding bonds shall be issued in accordance with the provisions of this chapter.
In no case shall any bonds be refunded whereby:
(a) The interest cost to the authority computed on the basis of the interest rates borne by the bonds refunded and by the refunding bonds, will be increased by reason of the refunding; or
(b) The average maturity of the bonds refunded, computed to their stated maturities will be increased by reason of the refunding; or
(c) The time at which bonds may be redeemed is more than twelve (12) months after the date of sale of the refunding bonds;
(d) However, if it can be clearly shown that the refunding is being accomplished to prevent default or to provide flexibility to the authority in the financing of its projects, and if the State Treasurer shall certify that the need to refund an outstanding issue to prevent default or to provide flexibility to the authority in the financing of its projects has been determined by sufficient evidence filed with the State Treasurer, the provisions of subsections (a), (b) and (c) shall not prevent refunding.
It shall not be necessary for the bonds refunded to be surrendered and cancelled simultaneously with the delivery of the refunding bonds, but the proceeds of the sale of the refunding bonds, not used to pay for surrendered and cancelled bonds at the time of refunding, shall be deposited in a trust fund under conditions satisfactory to the authority and the State Treasurer.
If the refunding bonds are being issued to prevent default, the authority may exchange them with bondholders under such rules and regulations as established by the State Treasurer.
Sources: Codes, 1942, § 7545-40; Laws, 1958, ch. 230, § 10; Laws, 1969, Ex. Sess. ch. 35, § 1; Laws, 1991, ch. 520, § 6, eff from and after passage (approved April 10, 1991).