REFUNDING BONDS

(a) A public agency may issue refunding bonds to refund all or part of its outstanding bonds, including matured but unpaid interest coupons. (b) Refunding bonds: (1) mature serially or otherwise not more than 50 years after the date of issuance and bear interest at a rate permitted by state law; and (2) may be payable from the same source as the bonds being refunded or from other additional sources. (c) Refunding bonds must be approved by the attorney general in the same manner as other bonds. (d) The comptroller shall register refunding bonds: (1) on the surrender and cancellation of the original bonds; or (2) without surrender and cancellation of the original bonds if: (A) the order or resolution authorizing the refunding bonds provides that their proceeds be deposited in the place where the original bonds are payable; and (B) the refunding bonds are issued in an amount sufficient to pay the principal of and interest on the original bonds up to their maturity date or to their option date if the bonds are called for payment before maturity according to their terms. (e) A public agency may refund bonds in one or several installments. (f) Instead of the method provided by this section, a public agency may refund bonds, notes, or other obligations as provided by general law.