(a)

1. (1) A separate application package must be submitted for each bond issue to be paid off with a nonvoted refunding issue.

2. (2) The application package must include, but is not limited to:

   1. (A) The application;
   2. (B) A contract between the applying school district and its fiscal agent;
   3. (C) A preliminary Debt Service Comparison Schedule as prescribed in subsection (b) of this section;
   4. (D) A current certificate of assessment from the county clerk; and
   5. (E) A final Debt Service Comparison Schedule including the certificate of savings is required after the issue has been sold, as prescribed in subsection (b) of this section.

(b)

1. (1) Each nonvoted refunding bond issue must generate minimum principal and interest savings over the life of the refunding (new) issue, based on the existing debt schedule, of the lesser of one hundred thousand dollars ($100,000) or five percent (5%) of total principal and interest over the life of the bond on the refunded (old) issue.
2. (2) This calculated savings must be reduced by agent’s fees and related issuance costs.
3. (3) For purposes of this savings calculation, investment income earned on deposited proceeds of the refunding (new) issue shall be offset by corresponding interest charges on the refunding (new) issue.
4. (4) Also, principal and interest charged on the refunded (old) issue must be included in the calculation of savings until the debt is retired.

(c)

1. (1) Nonvoted refunding issues may not be combined in order to achieve required savings, as prescribed in subsection (b) of this section.
2. (2) Each nonvoted refunding bond must meet the minimum savings requirement independently.

(d)

1. (1) The amount of the new bond issue shall not exceed the approved loan amount on the application.
2. (2) If there is a sudden drop in interest rates after the application has been approved and more bonds must be sold to refund the outstanding bonds, written approval must be granted by the Commissioner of Elementary and Secondary Education for the increased amount prior to the sale of the refunding bonds.
3. (3) A revised preliminary Debt Service Comparison Schedule, as prescribed in subsection (b) of this section, must be provided to the commissioner at this time.