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, may be exchanged by the Board for federal securities which have been made available for escrow investment by any purchaser of refunding bonds, upon terms of exchange mutually agreed upon, and any federal securities so received by the Board shall be placed in escrow as provided in NRS 396.875 and 396.876.