(1) No such bonds may be refunded under this article unless they have been outstanding for at least one year from the date or respective dates of their delivery, and unless the holders thereof voluntarily surrender them for exchange or payment, or unless they either mature or are callable for prior redemption under their terms within ten years from the date of issuance of the refunding bonds. Provision shall be made for paying the securities within such period of time.
No maturity of any bond refunded may be extended over fifteen years, or beyond oneyear next following the date of the last outstanding maturity, whichever limitation is later. The rate of interest on such refunding bonds shall be determined by the board.
The principal amount of the refunding bonds may exceed the principal amount of therefunded bonds if the aggregate principal and interest costs of the refunding bonds do not exceed such unaccrued costs of the bonds refunded, except to the extent any interest on the bonds refunded in arrears or about to become due is capitalized with the proceeds of the refunding bonds. Principal may also then be increased to that extent. In no event, however, in the case of any bonds constituting a debt, shall the principal of the bonds be increased to any amount in excess of the debt limitation in section 32-11-534.
The principal amount of the refunding bonds may also be less than or the same as theprincipal amount of the bonds being refunded so long as provision is duly and sufficiently made for their payment.
Source: L. 69: p. 783, § 108. C.R.S. 1963: § 89-21-108. L. 70: p. 302, § 128.