N.M. Const. art. IX, § 15
Nothing in this article shall be construed to prohibit the issue of bonds for the purpose of paying or refunding any valid state, county, district or municipal bonds and it shall not be necessary to submit the question of the issue of such bonds to a vote as herein provided.
Municipal bonds to be put in escrow constitute refunding bonds. — Where proceeds of municipal bonds were to be placed in escrow and invested in United States bonds for the sole purpose of paying off indebtedness on existing municipal bonds over a 10-year period, the proposed issue constituted refunding bonds within contemplation of this section. City of Albuquerque v. Gott, 1964-NMSC-027, 73 N.M. 439, 389 P.2d 207.
School refunding bonds. — Laws 1927, ch. 128 (6-15-11 to 6-15-19 NMSA 1978), authorizing issuance of refunding bonds that might be in excess of 6% of assessed valuation of taxable property within school district, did not run counter to the prohibition of Section 11 of this article, in view of the exemption in this section. Southwest Sec. Co. v. Board of Educ., 1936-NMSC-008, 40 N.M. 59, 54 P.2d 412.
State refunding bonds. — Subject to the approval of the department of finance and administration, a board of education may issue general obligation refunding bonds in a principal amount that is greater than the principal amount of the outstanding bonds being refunded, provided the proceeds of the refunding bonds are used only for the purpose of refunding existing school district general obligation indebtedness, as provided by law, and not for new capital outlay projects, operating costs of a school district or other purposes besides refunding. 2001 Op. Att'y Gen. No. 01-03.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 56 Am. Jur. 2d Municipal Corporations, Counties, and Other Political Subdivisions §§ 656 to 659; 64 Am. Jur. 2d Public Securities and Obligations 131, 136, 261, 266 to 269; 72 Am. Jur. 2d States, Territories, and Dependencies § 85.
Special assessment bond, power of municipality to refund, 102 A.L.R. 202.
Smaller political units, constitutionality of statutory plan for financing or refinancing bonds of, by larger political unit, 106 A.L.R. 608.
Governmental unit's power to issue bonds as implying power to refund them, 1 A.L.R.2d 134.
20 C.J.S. Counties §§ 218 to 226; 64 C.J.S. Municipal Corporations § 1910; 81A C.J.S. States § 259.