(a) Bonds may be issued under this subchapter for the purpose of refunding any outstanding bonds issued pursuant to Arkansas Constitution, Amendment 62, or prior amendments to the Arkansas Constitution repealed by Arkansas Constitution, Amendment 62.

(b)

(1) The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.

(2) If sold for cash, the proceeds may be either applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof either at maturity or on an authorized redemption date.

(c)

(1) Bonds issued to refund outstanding bonds that were issued under Arkansas Constitution, Amendment 62, shall in all respects be authorized and issued in the manner provided for the bonds being refunded.

(2)

(A) However, if the refunding bonds are not in a greater principal amount than the bonds being refunded, the question of issuing the refunding bonds need not be submitted at an election.

(B) Any premium paid as part of the purchase price of the refunding bonds shall not be taken into account in calculating the principal amount of the refunding bonds.

(d)

(1) The ordinance under which the refunding bonds are issued may provide that any refunding bonds shall have the same priority of lien on all sources of taxation or other income as originally pledged for payment of the obligation refunded thereby.

(2) Alternatively, the ordinance may provide that refunding bonds to be issued to refund indebtedness originally created under Arkansas Constitution, Amendment 13 [repealed], Arkansas Constitution, Amendment 17 [repealed], Arkansas Constitution, Amendment 25 [repealed], or Arkansas Constitution, Amendment 49 [repealed] may be issued and secured in the manner provided in Arkansas Constitution, Amendment 62; , and this subchapter if the question of the issuance of the refunding bonds is submitted to the electors in the manner provided in § 14-164-309.

(e)

(1) Bonds may also be issued under the provisions of this subchapter for the purpose of refunding any outstanding short-term financing obligation issued under Arkansas Constitution, Amendment 78, or revenue bonds, including bonds secured in whole or in part by revenues derived from any special tax pledged to secure the bonds, issued, whether or not issued prior or subsequent to April 15, 1985, to finance capital improvements of a public nature if the question of the issuance of the refunding bonds is submitted to the electors in the manner provided in § 14-164-309.

(2)

(A) The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations.

(B) If sold for cash, the proceeds may either be applied to the payment of the bonds being refunded or deposited in an irrevocable trust for the retirement thereof at maturity or on an authorized redemption date.