Calls for prior redemption: Limitations

Nothing contained in the Local Government Securities Law or in any other law of this state shall be construed to permit the governing body to call on behalf of the municipality bonds or other securities outstanding now or any time after April 12, 1967, for prior redemption in order to fund or refund such securities or in order to pay them prior to their stated maturities, unless the right to call such securities for prior redemption was specifically reserved and stated in such securities at the time of their issuance, and all conditions with respect to the manner, price and time applicable to such prior redemption as set forth in the proceedings authorizing the outstanding securities are strictly observed. It is the intention of the Legislature in this section to make it certain that the holder of no outstanding bond or other security may be compelled to surrender such security for funding or refunding prior to its stated maturity or optional date of prior redemption expressly reserved therein, even though such funding or refunding might result in financial benefit to the municipality.