Sec. 51.438. REFUNDING BONDS. (a) A district may issue bonds to refund all or any part of its outstanding bonds, notes, or other obligations including matured but unpaid interest coupons.
(b) Refunding bonds shall mature serially or otherwise not more than 40 years from their date and shall bear interest at any rate or rates permitted by the constitution and laws of this state.
(c) Refunding bonds may be made payable from the same source as the bonds, notes, or other obligations being refunded or from other additional sources.
(d) The refunding bonds must be approved by the attorney general in the manner provided by law for other bonds of the district and shall be registered by the comptroller on the surrender and cancellation of the bonds being refunded.
(e) The orders or resolutions authorizing the issuance of the refunding bonds may provide that the refunding bonds will be sold and the proceeds deposited in the place or places at which the bonds being refunded are payable, in which case the refunding bonds may be issued before the cancellation of the bonds being refunded. If refunding bonds are issued before cancellation of the other bonds, an amount which, when added to the earnings and profits from the investment of such amount, is sufficient to pay the interest on and principal of the bonds being refunded to their maturity dates, or to their option dates if the bonds have been duly called for payment prior to maturity according to their terms, shall be deposited in the place or places at which the bonds being refunded are payable.
(f) The comptroller shall register refunding bonds without the surrender and cancellation of bonds being refunded.
(g) A refunding may be accomplished in one or in several installment deliveries.
(h) Refunding bonds are investment securities under Chapter 8, Business & Commerce Code.
(i) In lieu of the method provided by this section, a district may refund bonds, notes, or other obligations as provided by the general law of the state.
Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971. Amended by Acts 1985, 69th Leg., ch. 215, Sec. 1, eff. Sept. 1, 1985.
Structure Texas Statutes
Title 4 - General Law Districts
Chapter 51 - Water Control and Improvement Districts
Subchapter K. Issuance of Bonds
Section 51.403. Amount of Debt Limited by Constitution
Section 51.404. Issuance of Preliminary Bonds
Section 51.405. Election on Preliminary Bonds
Section 51.406. Conditions of Preliminary Bonds
Section 51.407. Tax to Pay Preliminary Bonds
Section 51.408. Issuance of Bonds
Section 51.410. Engineer's Report
Section 51.411. Election Order
Section 51.414. Vote at Election
Section 51.415. Order to Issue Bonds or Execute Contract
Section 51.419. Conditions of Bonds
Section 51.423. Validation Suit
Section 51.424. Effect of Prior Registration
Section 51.425. Procedure in Validation Suit
Section 51.426. Notice of Validation Suit
Section 51.427. Duties of Attorney General in Validation Suit
Section 51.428. Judgment in Validation Suit
Section 51.429. Effect of Validation Suit
Section 51.430. Certified Copy of Decree
Section 51.431. Registration of Bonds and Decree
Section 51.436. Interest and Sinking Fund
Section 51.437. Investment of Sinking Fund
Section 51.438. Refunding Bonds
Section 51.439. Limitation of Authority to Incur Debt and Issue Bonds
Section 51.440. Issuing Bonds in Excess of Limitation
Section 51.441. Modifications of Improvements
Section 51.444. Limitations on Interim Bonds
Section 51.445. Issuance of Bonds and Levy of Tax
Section 51.446. Deposit of Bonds to Secure Interim Bonds
Section 51.447. Procedure for Issuance and Sale of Interim Bonds
Section 51.448. Payment of Interim Bonds
Section 51.449. Redemption of Interim Bonds
Section 51.450. Alternate Methods for Paying Bonds
Section 51.451. Taxes to Secure Certain Bonds
Section 51.453. Hearing and Election on Certain Bonds