Whenever the board by resolution passed by a vote of two-thirds of all its members determines that the refunding of the whole or any portion of the bonded indebtedness will be of advantage to the district, the board may refund the bonded indebtedness or any portion thereof and issue refunding bonds of the district therefor.
BondsRefunding
Section § 98350
This law allows a board to decide, with a two-thirds majority vote, to refund (or pay back) a portion or all of the district's bonded debt if they find it beneficial. They can issue new refunding bonds to manage this debt.
refunding bonds bonded indebtedness district debt
Section § 98351
This law states that issuing refunding bonds does not count as new or increased debt according to this act, so there's no need for voter approval to issue them. The board has the authority to set up a process for calling and redeeming these bonds before their maturity date, as specified in the ordinance that authorizes the refunding bonds.
The issuance of refunding bonds shall not be construed as the incurring or increase of an indebtedness within the meaning of this act, and the approval of the voters is not required for the issuance of refunding bonds. The board may provide for the call and redemption of any or all of the bonds on any interest payment date prior to their fixed maturity in the ordinance authorizing the issuance of the refunding bonds.
refunding bonds incurring debt increase debt
Section § 98352
This section states that the rules in this chapter mainly control everything related to the handling of refunding bonds. This includes how they are created, sold, and repaid, as well as using bond money to pay interest. The law also covers the bonds' eligibility as investments.
Except as otherwise provided, the provisions of this chapter shall substantially govern as to all matters pertaining to the issuance of refunding bonds, including and without limiting the generality of the foregoing, the form, execution, issuance, maturity, redemption, refunding, validation, the payment of interest from bond funds, and the status of the bonds as investments.
refunding bonds bond issuance bond maturity
Section § 98353
This law states that when refinancing bonds, the new bonds must have an interest rate that isn't higher than the original bonds. The repayment of these new bonds has to start within a year, and the full repayment should be finished in 40 years or less from the start date.
Refunding bonds shall bear interest at a rate not exceeding the interest rate on the refunded bonds, but payment of the refunding bonds shall begin not later than one year from the date thereof and be completed in not more than 40 years from that date.
refunding bonds interest rate refinancing
Section § 98354
When a city or organization sells refunding bonds, the money they make from that sale can only be used for a few specific purposes. They can use it to buy back the old bonds they issued, pay off those old bonds at no more than their face value and any interest that has accrued, or pay the agreed call price for those bonds.
The proceeds of the sale of refunding bonds shall be applied only to the purchase, or retirement at not more than par and accrued interest, or the call price, of the bonded indebtedness for which the refunding bonds were issued.
refunding bonds bond proceeds bonded indebtedness
Section § 98355
Instead of selling new bonds to pay off old ones, the board is allowed to directly exchange the new refunding bonds for the old bonds, as long as the new bonds are worth at least their face value plus any interest they've earned.
In lieu of selling refunding bonds and using the proceeds to purchase or retire the bonds to be refunded, the board may exchange refunding bonds at not less than par and accrued interest for the bonds so refunded.
refunding bonds bonds exchange par value
Section § 98356
When old bonds are replaced or paid off in a district, they must be given to the district's treasurer. The treasurer will cancel them by marking how the process was done, mentioning details like whether it was through exchange or purchase, and any purchase amount involved. Each bond and its attached coupons will also be stamped with 'canceled' and the cancellation date.
Wherever outstanding bonds are refunded they shall be surrendered to the treasurer of the district, who shall cancel them by endorsing on their face the manner in which the refunding was effected, whether by exchange or purchase, and the amount for which so purchased, (if any) and by perforating through each bond and each coupon attached thereto the word “canceled” together with the date of cancellation.
outstanding bonds refunding treasurer
