(a) An issuer by resolution may provide for the issuance of revenue refunding bonds to:
(1) refund any outstanding bonds issued under this chapter; and
(2) construct improvements, extensions, or enlargements to the industrial project or medical project in connection with which the bonds being refunded were issued.
(b) An issuer may issue revenue refunding bonds in exchange for outstanding bonds, notwithstanding Section 1433.065, or the issuer may use the proceeds from the sale of the revenue refunding bonds to redeem outstanding bonds.