48-2471. Refunding bonds
A. If a district has outstanding any bonds issued pursuant to this article or
article 6 of this chapter, it may issue, by resolution of the board of directors, bonds
to refund such outstanding bonds. Such bonds shall be designated "refunding bonds" and
shall be secured by the revenue of the district or any part thereof or all or any part of
revenues pledged to the bonds which have been thereby refunded.
B. Refunding bonds may be issued in an amount up to an amount sufficient to pay:
1. The principal of the outstanding bonds or other obligations to be refunded.
2. The redemption premium, if any, on such outstanding bonds on the prior
redemption thereof.
3. The interest due and payable on such outstanding bonds to the dates upon which
the principal of such bonds matures or to the dates upon which the outstanding bonds are
called for redemption by the district, which call dates may, subject to the resolutions
authorizing said outstanding bonds, be any date prior to maturity of said outstanding
bonds, including any interest theretofore accrued and unpaid.
4. Any expenses of the issuance and sale of refunding bonds, including the creation
of initial debt service reserve funds and reasonable and necessary fees of financial and
legal advisers. Refunding bonds may be issued to refund more than one issue of
outstanding obligations notwithstanding that such outstanding obligations may have been
issued at different times and for different purposes.
C. Any monies in the sinking or reserve funds or other funds for such outstanding
bonds to be refunded may be used for the purpose stated in paragraphs 1, 2, 3 and 4, of
subsection B, or may be deposited in a sinking fund or reserve fund or other funds for
the refunding bonds to be issued. When refunding bonds issued pursuant to this section
are sold, a sufficient amount of the proceeds of the refunding bonds shall be invested
and reinvested in direct obligations of the United States of America or in time deposits
evidenced by certificates of deposit in the bank or trust company holding such fund, or
in time deposits evidenced by certificates of deposit in one or more banks or trust
companies, each of which is a member of the federal deposit insurance corporation or in
such other securities or obligations as may be determined by the board which are
scheduled to mature with interest so as to provide funds to pay when due, or when called
for redemption, the outstanding bonds to be refunded together with the interest thereon
and redemption premiums, if any, and such proceeds or obligations shall, and other funds
legally available for such purpose may, be deposited in the respective principal and
interest redemption funds and shall be held in trust for the payment of the refunded
bonds with interest and redemption premiums, if any, on maturity or redemption. The bank
or trust company holding the proceeds of such refunding bonds in trust shall deliver
monthly to the treasurer of the district which issued the refunding bonds a copy of the
document evidencing each transaction relating to the trust fund.
D. When refunding bonds are issued under this chapter, the resolution authorizing
them may also provide for other bonds to be issued jointly with such refunding bonds for
any other purpose or purposes authorized and provided for by law. Any refunding bonds
may be sold as provided in this article or may be exchanged for the bonds to be refunded
thereby.
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