35-471. Refunding bonds; resolution authorizing
issuance; definition


A. The board of supervisors, on behalf of the county, the governing body of a city
or town or similar municipal corporation and a school district governing board may issue
refunding bonds to refund the bonded indebtedness of such county, school district, city
or town or other similar municipal corporation when it is expedient to do so.


B. The board of supervisors or other governing body desiring to issue refunding
bonds shall adopt and include in its minutes a resolution stating:


1. The facts and determination of the necessity or advisability of refunding such
bonded indebtedness, including an estimate of the present value of the debt service
savings, net of all costs associated with the refunding bonds, that will occur.


2. The amount of bonds to be issued, the date of such bonds and the denominations.


3. The rate of interest and the maturity date.


4. The place of payment, within or without the state, of the principal and
interest.


C. The amount of net premium associated with a refunding bond issue may not exceed
the sum of the following:


1. An amount not to exceed five per cent of the par value of the refunding bonds.


2. The amount equal to the difference between the amount required to fund the
escrow account and the par amount of the refunded bonds.


3. The amount equal to the costs incurred in issuing the refunding bonds.


D. Any net premium not used to pay the costs of the bond issue or to fund the
escrow account shall be deposited in a debt service fund and used only to pay interest on
the bonds.


E. For the purposes of this section, "net premium" means the difference between the
par amount of the bond issue and the bond issue price determined pursuant to United
States treasury regulations.