§47-17  Refunding bonds authorized.  Forthe purpose of refunding all or any portion of the present and future bondedindebtedness of any county issued pursuant to this chapter or bonds payablefrom the revenue of an undertaking or loan program as defined in section 49-1,the director of finance of any county, upon authorization of the governingbody, may from time to time issue general obligation refunding bonds of thecounty to pay or to provide for the payment of all or any part thereof, and mayinclude various series and issues of the outstanding bonds in a single issue ofrefunding bonds and may include refunding bonds and bonds otherwise to beissued under this chapter, in a single issue of bonds.

The interest rate or rates of the refundingbonds shall not be limited by the interest rate or rates borne by any of thebonds to be refunded thereby.

The refunding bonds may be issued and deliveredon, or at any time before, the maturity or redemption date of the bonds to berefunded that the director of finance, with the approval of the governing body,determines to be in the best interest of the county.  The refunding bonds shallbe issued in accordance with this chapter with respect to bonds otherwiseissued under this chapter, and all of the provisions of this chapter shallapply to the refunding bonds.  Nothing in this section shall require or bedeemed to require the county to elect to redeem or prepay bonds being refunded,or, if the county elects to redeem or prepay any such bonds, to redeem or prepayas of any particular date or dates.

Proceeds of the sale of the refunding bondsshall be applied solely to the payment of the principal of, and redemptionpremium, if any, and interest on the bonds to be refunded under this chapterand to the payment of all costs of issuance of such refunding bonds andinterest accrued on the refunding bonds to the date of delivery thereof andpayment therefor.  Pending the time the proceeds derived from the sale ofrefunding bonds issued under this section are required for the purposes forwhich they were issued, the director of finance, upon authorization or approvalof the governing body, may invest the proceeds in obligations of, orobligations unconditionally guaranteed by, the United States of America or insavings accounts, time deposits, or certificates of deposit of any bank ortrust company, within or without the State, to the extent that the savingsaccounts, time deposits, or certificates of deposit are collaterally secured bya pledge of obligations of, or obligations unconditionally guaranteed by, theUnited States of America; or in obligations of any state of the United Statesof America or any agency, instrumentality or local government of any suchstate, the provision for payment of the principal of and interest on whichshall have irrevocably been made by deposit of obligations of, or obligationsunconditionally guaranteed by, the United States of America.  To further securethe bonds being refunded the director of finance, upon authorization orapproval of the governing body, may enter into a contract with any bank ortrust company, within or without the State, with respect to the safekeeping andapplication of the proceeds of the refunding bonds, and the safekeeping andapplication of the earnings on the investment, which contract shall become apart of the contract with the holders of the bonds being refunded. [L 1989, c80, pt of §2]