33-1121. REFUNDING BONDS AND ADVANCE REFUNDING BONDS. The board of trustees of any school district may issue negotiable bonds for the purpose of refunding any outstanding bonded indebtedness of the district pursuant to the provisions of chapter 5, title 57, Idaho Code, subject to the following additional provisions:
(1) The provisions of section 33-1107, 33-1109, 33-1111, 33-1115, 33-1117, 33-1118 and 33-1120, Idaho Code, shall be applicable to refunding bonds.
(2) No election shall be required for the issuance of refunding bonds provided that the refunding bonds do not create an additional indebtedness. Additional indebtedness shall mean either that the term of the refunding bonds exceeds the term of the bonds to be refunded, except as provided in subsection (4) of this section; or that the total amount of principal and interest to be paid on the refunding bonds exceeds the total of principal and interest to be paid on the bonds to be refunded.
(3) In the case of refunding bonds issued in advance of the date of calling and redeeming such outstanding bonds, the net interest cost of the refunding bonds shall not exceed the net interest cost of the bonds to be refunded.
"Net interest cost" of a proposed issue of refunding bonds is defined as the total amount of interest to accrue on said refunding bonds from their date to their respective maturities, plus the total amount of premiums payable to the holders of said outstanding bonds as a condition to their redemption, less the amount of any premium above their par value at which said refunding bonds are being or have been sold. "Net interest cost" of an outstanding issue, or issues, to be refunded is defined as the total amount of interest which would accrue on said outstanding bonds from the date of the proposed refunding bonds to the respective maturity dates of said outstanding bonds to be refunded. In all cases the net interest cost shall be computed without regard to any option of redemption prior to the designated maturities.
(4) The maturity of the refunding bonds may not exceed the term of the outstanding bonds except in cases where an extension, not to exceed sixty (60) days and in the same fiscal year shall be needed to enable the refunding bonds to comply with the requirements of the Idaho school bond guaranty act and the provisions of section 33-5306, Idaho Code.
History:
[33-1121, added 1965, ch. 224, sec. 1, p. 512; am. 2005, ch. 392, sec. 1, p. 1317; am. 2013, ch. 183, sec. 7, p. 439.]
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