A. The ordinance authorizing the issuance of refunding bonds for an improvement district shall describe the:
(1) details of the issue;
(2) form of the refunding bonds and interest coupons, if any;
(3) fund from which the principal and interest of the refunding bonds will be paid; and
(4) manner in which the bonds are to be issued.
B. The refunding bonds may:
(1) be issued in an amount less than, equal to or greater than the principal amount of improvement district bonds being refunded;
(2) not bear a rate of interest greater than the rate of interest borne by the assessments providing security for the refunding bonds if secured by assessments;
(3) become due and payable in regular numerical order;
(4) not be issued for a period of more than twenty years from the date of issuance; and
(5) be payable from substitute security or from the same funds that were applicable to the payment of the bonds being refunded.
C. The refunding bonds may be:
(1) sold at a public or private sale at a discount; or
(2) exchanged, dollar for dollar, for the improvement district bonds being refunded.
History: 1953 Comp., § 14-32-36, enacted by Laws 1965, ch. 300; 1983, ch. 265, § 9; 1991, ch. 199, § 28.
ANNOTATIONSThe 1991 amendment, effective April 4, 1991, in Subsection B, substituted "may" for "shall" at the end of the introductory phrase, "be issued in an amount less than, equal to or greater than the principal amount of" for "not be issued in an amount greater than the principal and accrued interest due on the" in Paragraph (1), and "assessments providing security for the refunding bonds if secured by assessments" for "bonds being refunded" in Paragraph (2), and inserted "substitute security or from" in Paragraph (5) and, in Subsection C, substituted "a public or private sale at a discount" for "not less than par" in Paragraph (1) and deleted a sentence at the end of Paragraph (2) which read "If the refunding bonds are exchanged for the bonds being refunded, the lower numbered refunding bonds shall be exchanged for the lower numbered bonds being refunded so that the bondholder shall have relatively the same position in the refunding issue as he had in the outstanding bonds prior to the refunding".