[§304A-2685]  Refunding revenue bonds;authorization and purpose.  (a)  The board, without furtherauthorization or approval of the legislature, but with the approval of thegovernor, may provide for the issuance of revenue bonds (herein referred to asrefunding bonds) for the purpose of refunding, redeeming, or retiring at or atany time before maturity or at any time before the first date upon which theoutstanding revenue bonds to be refunded may be called for redemption, anyrevenue bonds issued under this subpart, including any revenue bonds that theholders may consent to be paid or refunded even though the revenue bonds arenot matured or are not callable or redeemable, and for the purpose of fundingindebtedness not evidenced by revenue bonds but that was incurred for purposesfor which revenue bonds may be issued pursuant to this subpart.  The rate ofinterest borne by the refunding bonds shall not be affected or limited by therate of interest borne by the revenue bonds to be refunded or the indebtednessto be funded.

All provisions of this subpart applicable tothe issuance of revenue bonds shall be complied with in the issuance ofrefunding bonds.  Refunding bonds shall be sold as provided in section304A-2674, or the board may provide for the exchange of refunding bonds for alike principal amount of outstanding revenue bonds for the refunding of whichthe issuance of the refunding bonds has been authorized, whether or not theinterest rate on the refunding bonds is higher than the interest rate on thebonds refunded.

(b)  Refunding bonds may be issued in aprincipal amount sufficient to provide funds for the payment of all revenuebonds or indebtedness to be funded or refunded, and for the payment of allexpenses paid or incurred in connection with the calling, redeeming, retiring,or paying of indebtedness or outstanding revenue bonds, and the issuance ofrefunding bonds.  The expenses may include the amount necessary for the paymentof interest upon the indebtedness to be funded or the revenue bonds to berefunded to the maturity or redemption date thereof, the amount necessary forthe payment of interest upon the refunding bonds from the date of deliverythereof to the date upon which the principal of the outstanding revenue bondsto be refunded will be paid whether at maturity or pursuant to a call forredemption thereof, or pursuant to agreement with the holders thereof, plus inany case the amount of any premium required to be paid to call or retire therevenue bonds. [L 2007, c 161, pt of §1]