EXCHANGE OF BONDS

(a) If county bonds are authorized for commissioners or justice precinct or road district bonds that have been issued and sold, an exchange of a like amount of the county bonds may be made with the holder of any outstanding bonds of the precinct or district. (b) An agreement for an exchange under this section must: (1) be by order of the commissioners court authorizing the exchange; and (2) contain the signed and acknowledged written consent of the holder of the bonds in the form required by law for written instruments. (c) A copy of the order authorizing the exchange, the agreement, and the county bonds to be given in exchange shall be submitted to the attorney general for approval. The exchange is not effective until the attorney general issues a certificate approving the exchange. (d) If the exchange takes effect under this section: (1) the commissioners court shall cancel and destroy the bonds of the precinct or district; (2) the county may not impose the tax approved at the election of the precinct or district authorizing the bonds; and (3) the sinking fund associated with the bonds of the precinct or district shall be transferred to the sinking fund account of the county.