(a)(1) Bonds may be issued under this chapter for the purpose of refunding any bonds theretofore issued under this chapter.(2)(A) Refunding bonds may be issued alone or combined with bonds issued under this chapter into a single issue for the purpose of refunding outstanding bonds, acquiring lands, and constructing and equipping buildings or facilities or reconstructing, extending, improving, or reequipping existing buildings or facilities.(B)(i) When refunding bonds are issued, the bonds may be either sold or delivered in exchange for the outstanding bonds being refunded.(ii) If sold, the proceeds may either be applied to the payment of the bonds being refunded, or the proceeds may be deposited in escrow for the retirement of them.(b)(1) All refunding bonds shall, in all respects, be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of such bonds.(2) The resolution or indenture authorizing or securing refunding bonds may provide that the bonds shall have the same priority of lien on the revenues pledged for their payment and on the property mortgaged as security for their payment as was enjoyed by refunding bonds may provide that the bonds shall have the same priority of lien on the revenues pledged for their payment and on the property mortgaged as security for their payment as was enjoyed by the bonds refunded by them.Acts 1961, No. 439, § 11; A.S.A. 1947, § 21-1511.
Arkansas Legal Code