Under the Institution Bond Act:
A. no bonds may be retired and refunded unless:
(1) they mature or are callable for prior redemption under their terms within ten years from the date of issuance of the refunding bonds; or
(2) the holders voluntarily surrender them for exchange or payment;
B. no maturity of any bonds refunded may be extended over fifteen years, or interest increased to any rate exceeding six percent a year; and
C. nothing requires the principal amount of the refunding bonds to equal the amount of the outstanding bonds to be retired and refunded as long as the principal amount of the refunding bonds, together with any interest to be derived from investment of the principal, is sufficient for payment of the outstanding bonds, including the principal, interest, any prior-redemption premium and any escrow agent charges, as they become due.
History: 1953 Comp., § 11-9-21, enacted by Laws 1963, ch. 298, § 9.