(a) Revenue bonds issued for the purpose of refunding revenue bonds issued prior to March 3, 1986, may be issued without the necessity of an election under this subchapter if the source of repayment is substantially the same as that provided at the original issuance of the revenue bonds to be refunded.
(b) Revenue bonds to refund revenue bonds authorized at an election pursuant to this subchapter may be refunded without the necessity of an election. However, if the refunding revenue bonds shall be in a greater principal amount than the revenue bonds being refunded or shall be payable from a different source of revenues, the question of issuing the refunding revenue bonds shall be submitted at an election called in the manner provided in this subchapter.
(c) These refunding revenue bonds may be either sold for cash or delivered in exchange for the outstanding obligations. If sold for cash, the proceeds may either be applied to the payment of the revenue bonds being refunded or deposited in an irrevocable trust for the retirement of the revenue bonds at maturity or on an authorized redemption date.