(a) Any road improvement districts of this state, whether organized and created under general law or by special act of the General Assembly, shall have power to fund and refund its outstanding valid bonded indebtedness or judgments on its bonded indebtedness and accrued matured interest thereon on such terms as the commissioners or directors of the districts shall deem for the best interest of the districts and, to that end, may issue the negotiable bonds of the districts, with interest coupons attached.
(b)
(1) The commissioners or directors of the districts may exchange new bonds for the outstanding bonds, including accrued matured interest coupons, or may issue and sell the new bonds and use the proceeds thereof to pay the outstanding bonds or judgments and accrued interest thereon.
(2) The refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds or judgments and accrued interest thereon to the date of the refunding bonds, plus printing, trustee, legal, and other necessary expenses incurred in connection with the issuance of the refunding bonds.
(3) No refunding bonds shall bear a greater rate of interest than three percent (3%) per annum, nor shall they be disposed of at less than par. However, bonds bearing a lower rate of interest than three percent (3%) per annum may be sold at a discount on a basis whereby the district shall not be required to pay approximately more than if the bonds had been sold at par bearing three percent (3%) interest.
(4) All such refunding bonds:
(A) Shall be negotiable instruments and may have coupons evidencing interest, payable at annual or semiannual periods;
(B) Shall have all the rights of security, including liens on assessment of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the bonds to be refunded or the bonds on which the judgments to be refunded are based; and
(C) May be further secured by a pledge and mortgage of the assessment benefits and taxes in the district, to be executed by the directors or commissioners.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.