The authority may issue refunding bonds, and the comptroller must register them when the stated conditions are met.
Sec. 5012.0207. REFUNDING BONDS. (a) The authority may make and issue bonds for the purpose of refunding or refinancing outstanding bonds authorized and issued by the authority under this chapter or other law and the interest and any premium on the bonds to maturity or on any earlier redemption date specified in the resolution authorizing the issuance of the refunding bonds. (b) Refunding bonds issued by the authority may: (1) be issued to refund more than one series of outstanding bonds; (2) combine the pledges of the outstanding bonds for the security of the refunding bonds; or (3) be secured by other or additional revenue. (c) The provisions of this chapter regarding the issuance of bonds, the terms and provisions of bonds, and the remedies of the bondholders apply to refunding bonds issued by the authority. (d) The comptroller shall register the refunding bonds issued by the authority on the surrender and cancellation of the bonds to be refunded. (e) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the authority, in the resolution authorizing the issuance of refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds at the places at which the bonds to be refunded are payable. In that case, the refunding bonds may be issued in an amount sufficient to pay the interest and premium, if any, on the bonds to be refunded to the bonds' maturity date or specified earlier redemption date, and the comptroller shall register the refunding bonds without the concurrent surrender and cancellation of the bonds to be refunded. (f) The authority may also refund outstanding bonds in the manner provided by Chapters 60-63, Water Code. Added by Acts 2019, 86th Leg., R.S., Ch. 468 (H.B. 4172), Sec. 1.01, eff. April 1, 2021.