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

2. (b) A refunding bond may be:

   1. (1) sold, with the proceeds of the bond applied to the payment of the outstanding indebtedness; or

   2. (2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness.

      Redesignated from Special District Local Laws Code, Section 1072.205 by Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(53), eff. September 1, 2011.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.