Texas Special District Local Laws Code - Section 1003.205. Refunding Bonds
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§ 1003.205. REFUNDING BONDS. (a) The board may, without
an election, issue refunding bonds to refund outstanding bonds
issued or assumed by the district.
(b) Subject to Subsection (c), a refunding bond may be:
(1) sold, with the proceeds of the refunding bonds
applied to the payment of the bonds to be refunded; or
(2) exchanged in whole or in part for not less than a
like amount of bonds to be refunded and the matured but unpaid
interest on those bonds.
(c) The average annual interest cost on the refunding bonds,
computed in accordance with recognized standard bond interest cost
tables, may not exceed the average annual interest cost on the bonds
to be refunded, unless the total interest cost on the refunding
bonds to their maturity dates is less than the total interest cost
on the bonds to be refunded.
(d) Any premium required to be paid, as a condition to
payment in advance of the stated maturity dates, on the bonds to be
refunded must be included in computing the net interest cost to the
district of the refunding bonds.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
Section: 1003.152 1003.153 1003.154 1003.201 1003.202 1003.203 1003.204 1003.205 1003.251 1003.252 1003.253 1004.001 1004.002 1004.003 1004.004
Last modified: August 10, 2007
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