(1) Obligations may be issued under this chapter to refund any outstanding short-term financing obligations issued pursuant to Arkansas Constitution, Amendment 78, whether or not issued under this chapter.
(2) Refunding obligations may be either sold for cash or delivered in exchange for the outstanding obligations being refunded.
(3) If sold for cash, the proceeds may be applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof, either at maturity or on an authorized redemption date.
(4) Refunding obligations shall in all respects be authorized, issued, and secured in the manner provided in this section.
(5) Refunding obligations shall mature not later than five (5) years beyond the issue date for the obligations being refunded.