Any district may issue refunding bonds for the purpose of refunding any or all of the outstanding bonds and warrants of the district.
Refunding BondsGeneral Refunding Provisions
Section § 25035
This law allows a district to issue new bonds, called refunding bonds, to pay off or replace its existing bonds and warrants. It's a way for the district to manage its debt by refinancing.
refunding bonds district finance debt management
Section § 25035.5
This law allows certain districts to issue new bonds to pay off old bonds without needing to hold an election. This can only happen if the new bonds save the district money on their total payments. These new bonds can't be used for anything other than paying off old bonds or for the original purposes of the old bonds.
Notwithstanding any other provision of this division requiring any election, any district described in Section 20560.1 may issue refunding bonds for the purpose of refunding any or all of the outstanding bonds of the district, even if the principal amount of the refunding bonds is greater than the principal amount of the bonds being refunded, without the necessity of calling and holding an election in the district if the issuance of the refunding bonds results in a reduction in the total remaining interest and principal payments on bonds of the district. In no event shall the proceeds of any refunding bonds issued pursuant to this section be used for purposes other than to refund outstanding bonds of the district or for purposes other than those for which the refunded bonds were authorized.
refunding bonds outstanding bonds bond election waiver
Section § 25038
This law states that the board is required to hold an election to decide whether new bonds should be issued to refinance existing debt.
The board shall call an election for the purpose of authorizing the issuance of the refunding bonds.
election refunding bonds board duties
Section § 25039
This section states that when there's an election about issuing refunding bonds, the notice, conduct, and determination of the election results should follow the same process as a bond election. However, only a simple majority vote is needed to approve the refunding bonds.
Notice of the election shall be given and it shall be held and its result determined and declared substantially in the manner provided for a bond election, except that a majority vote only is required for the authorization of refunding bonds.
refunding bonds bond election majority vote
