1. Any bonds issued for refunding purposes may either be delivered in exchange for the outstanding bonds being refunded or may be publicly or privately sold.
2. The refunding bonds, or any part thereof, except as limited by subsection 2 of NRS 349.344, may be exchanged by the State for federal securities and other securities of the Federal Government which have been made available for escrow investment by any purchaser of refunding bonds, upon terms of exchange mutually agreed upon, and any such securities so received by the State shall be placed in escrow as provided in NRS 349.342 and 349.344.