§49-20  Refunding revenue bonds. Whenever the county has any outstanding revenue bonds or general obligationbonds issued for an undertaking or loan program pursuant to section 47-4, andthe governing body determines that it will be financially sound andadvantageous to the county to refund the outstanding revenue bonds or generalobligation bonds, the governing body shall have the power to provide for theissuance of refunding revenue bonds with which to provide for the payment ofthe outstanding bonds or any part thereof at or before the maturity orredemption date thereof, with the right to include various series and issues ofthe outstanding bonds in a single issue of refunding revenue bonds and to payany redemption premium and interest to accrue and become payable on theoutstanding bonds being refunded and to establish reserves for the refundingrevenue bonds and partly for the construction or acquisition of improvementsand additions to and extensions of the undertaking for the construction or acquisitionof which the outstanding bonds were issued or in the case of a loan programpartly to extend the loan program.

The refunding revenue bonds shall be payablesolely from and secured by the revenue of the loan program or undertakingfinanced from the proceeds of the bonds being refunded, or the user taxesderived with respect to such undertaking, or a combination of both, and shallbe a valid claim only as against that revenue, or user taxes, or combination ofboth.  Refunding revenue bonds issued for the purpose of establishing andadministering a loan program may also be secured by a pledge of all or aportion of undertakings, mortgages, and other obligations held by thedepartment as security for a loan made under the program.  The interest rate orrates of the refunding revenue bonds shall not be limited by the interest rateor rates borne by any of the revenue bonds to be refunded thereby.  Therefunding revenue bonds, in the discretion of the governing body, may beexchanged at par for the bonds which are being refunded or may be sold in themanner provided in this chapter for revenue bonds, as the governing body shalldeem for the best interests of the county.  The refunding revenue bonds may beissued and delivered at any time prior to the date of maturity or redemptiondate of the bonds to be refunded that the governing body determines to be inthe best interest of the county.  The refunding revenue bonds, except asspecifically provided in this section, shall be issued in accordance with thischapter.  Pending the time the proceeds derived from the sale of refundingrevenue bonds issued hereunder are required for the purposes for which theywere issued, the proceeds, upon authorization or approval of the governingbody, may be invested in obligations of, or obligations unconditionallyguaranteed by, the United States of America or in savings accounts, timedeposits or certificates of deposit of any bank or trust company within orwithout the State, to the extent that the savings accounts, time deposits, orcertificates of deposit are collaterally secured by a pledge of obligations of,or obligations unconditionally guaranteed by, the United States of America; orin obligations of any state of the United States of America or any agency,instrumentality or local government of any state, the provision for payment ofthe principal of and interest on which shall have irrevocably been made bydeposit of obligations of, or obligations unconditionally guaranteed by, theUnited States of America, and to further secure the refunding revenue bonds, orthe revenue bonds being refunded, or both, the county may enter into a contractwith any bank or trust company, within or without the State, with respect tothe safekeeping and application of the proceeds of the refunding revenue bonds,and the safekeeping and application of the earnings of the investment.  Allbonds so refunded and redeemed by the issue and sale or issue and exchange ofrefunding revenue bonds shall be canceled.

Nothing in this section shall require or bedeemed to require the county to elect to redeem or prepay bonds being refunded,or to redeem or prepay revenue bonds being refunded which were issued in theform customarily known as term bonds in accordance with any sinking fundinstallment schedule specified in any proceedings authorizing the issuancethereof, or, in the event the county elects to redeem or prepay any such bonds,to redeem or prepay as of any particular date or dates.  The determination ofthe county with respect to the financial soundness and advantage of theissuance and delivery of refunding revenue bonds authorized hereby whenapproved by the governing body shall be conclusive, but nothing in this sectionshall require the holders of any outstanding revenue bonds being refunded toaccept payment thereof otherwise than as provided in the revenue bonds to berefunded. [L 1989, c 80, pt of §3]