(a) Refunding bonds issued to make a deposit under this subchapter or Subchapter C shall be sold for cash in a principal amount necessary to provide all or part of the money required to:
(1) pay the principal of the obligations to be refunded and the interest to accrue on those obligations to their maturity; or
(2) redeem the obligations to be refunded, before maturity, on the date or dates the obligations are subject to redemption, including the principal, interest to accrue on the obligations to their redemption date or dates, and any required redemption premium.
(b) The refunding bonds:
(1) shall be sold under the terms and procedures for the sale as determined by the governing body of the issuer; and
(2) may be sold at public or private sale.