(a) Such municipal corporation by its legislative branch, by resolution or ordinance, shall determine the necessity for issuing refunding bonds, the amount of legal outstanding indebtedness to be refunded, what amount of new bonds shall be issued, at what time and place they shall be payable, the rate of interest thereon, or that the rate of interest shown by the accepted bid shall determine the rate of interest thereon, and when payable, the form of bond, which shall be substantially in the form provided in this subchapter, and whether the bonds shall be registered or have interest coupons attached. Such new bonds shall not be used or sold except to provide means for paying or retiring such outstanding indebtedness in accordance with the provisions of subsection (b) of this section.

(b) A municipal corporation by its legislative branch, by resolution or ordinance, may issue refunding bonds for the purpose of paying any of its bonds or notes at maturity or upon acceleration or redemption. The refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the municipality deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of the refunding bonds, as may be required by the resolutions under which bonds are issued. (Amended 1983, No. 24, § 2, eff. April 6, 1983; 2017, No. 74, § 89.)