Issues of refunding bonds, relying solely on the authority of Texas Civil Statutes, Article 717k or 717k-3, must be clearly issued as either advance refunding, wherein the refunding bonds are sold for cash and the proceeds deposited with the state treasurer for the purpose of providing for the final retirement or redemption of the underlying securities (Texas Civil Statutes, Article 717k), or an exchange refunding, wherein the refunding bonds are exchanged for the underlying securities rather than sold for cash (Texas Civil Statutes, Article 717k-3). Hybrid exchange/advance refunding transactions which have no additional statutory authority will not be approved by the attorney general.

Source Note:The provisions of this §53.16 adopted to be effective January 1, 1976.