State Refunding Bond Act

The State Refunding Bond Act governs the issuance of refunding bonds — bonds sold to refinance or retire outstanding public debt already incurred by a state and its instrumentalities. It supplies standing authority to issue such bonds without a separate election and provides that refunding does not create new debt, while setting the terms of issuance: principal amounts, payment schedules, the pledge of security, the use of sinking and reserve funds, and sale at, above, or below par. It also addresses the application of proceeds to the bonds being refunded, authorizes swap agreements in connection with the obligations, and exempts the bonds from taxation.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.