§ 21.5. Issuance of Refunding Bonds; Notice of Intention; Hearing; Amount

The board of trustees may adopt a resolution declaring its intention to issue refunding bonds of the district for the purpose of refunding any or all outstanding bonds of the district. The board of trustees shall thereafter prepare a notice of its intention to issue refunding bonds and set a date for the hearing of all interested parties as to whether the refunding bonds should be issued. The notice shall contain a statement of the time and place of the hearing and of the advantages and disadvantages which might accrue to the district, and the taxpayers thereof, by the issuance of refunding bonds. The notice shall be published in a newspaper of general circulation, printed and published in the district, at least once each week for two successive weeks before the date set for the hearing.

At the hearing any person interested may appear and be heard. The trustees may continue the hearing by public announcement from time to time until the hearing is completed. At the conclusion of the hearing the board of trustees may by resolution call a special election for the purpose of submitting to the qualified electors of the district the proposition of incurring a bonded debt to refund existing indebtedness of the district. Thereafter the board of trustees shall proceed with the issuance of refunding bonds in the manner provided by this act for the issuance and sale of the general obligation bonds of the district, except that refunding bonds may be issued only during the period of two years following the date of the election at which such bonds were approved.

Refunding bonds may be issued in a principal amount sufficient to provide funds for:

(a) The payment of the bonds to be refunded thereby.

(b) All expenses incidental to the calling, retiring, or payment of the outstanding bonds and the issuance of the refunding bonds, including the difference in amount between the par value of the refunding bonds and any amount less than par for which they may be sold.

(c) Any amount necessary to be made available for the payment of interest upon the refunding bonds from the date of their sale to the date of maturity or payment of the bonds to be refunded out of the proceeds of the sale, or the date upon which the bonds to be refunded will be paid pursuant to call thereof or agreement with the holders thereof.

(d) The premium, if any, necessary to be paid in order to call or retire the outstanding bonds.

(Added by Stats.1961, c. 557, p. 1668, § 1.)