(1) Any school district of this state is authorized to sell bonds in an amount not to exceed an amount equal to the principal amount of the bonds refunded as originally issued for the purposes of refunding all or any part of its bonded indebtedness outstanding at the time of passage of this act, and of providing funds for maintaining and operating schools in the school district.
(2) Such bonds may be sold with the privilege of conversion as provided in this subchapter.
(3) Issuance of the bonds shall be subject to the approval of the State Board of Education and to the approval by the electors of the school district of a continuing annual tax for retirement of the bonds.