(a) Any road improvement districts of this state, whether organized and created under general law or by special act of the General Assembly, shall have power to fund and refund its outstanding valid bonded indebtedness or judgments on its bonded indebtedness and accrued matured interest thereon on such terms as the commissioners or directors of the districts shall deem for the best interest of the districts and, to that end, may issue the negotiable bonds of the districts, with interest coupons attached.
(b)
(1) The commissioners or directors of the districts may exchange new bonds for the outstanding bonds, including accrued matured interest coupons, or may issue and sell the new bonds and use the proceeds thereof to pay the outstanding bonds or judgments and accrued interest thereon.
(2) The refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds or judgments and accrued interest thereon to the date of the refunding bonds, plus printing, trustee, legal, and other necessary expenses incurred in connection with the issuance of the refunding bonds.
(3) No refunding bonds shall bear a greater rate of interest than three percent (3%) per annum, nor shall they be disposed of at less than par. However, bonds bearing a lower rate of interest than three percent (3%) per annum may be sold at a discount on a basis whereby the district shall not be required to pay approximately more than if the bonds had been sold at par bearing three percent (3%) interest.
(4) All such refunding bonds:
(A) Shall be negotiable instruments and may have coupons evidencing interest, payable at annual or semiannual periods;
(B) Shall have all the rights of security, including liens on assessment of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the bonds to be refunded or the bonds on which the judgments to be refunded are based; and
(C) May be further secured by a pledge and mortgage of the assessment benefits and taxes in the district, to be executed by the directors or commissioners.