1. (a) The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

2. (b) Refunding bonds may be:

   1. (1) sold, with the proceeds of the refunding bonds applied to the payment of the bonds to be refunded; or
   2. (2) exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness.

Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.