A. Any bonds issued by any district may be refunded in the name of the district issuing the bonds being refunded without an election by the district issuing them or any successor bonds.

B. The issuance of refunding bonds shall be to:

(1) refund, pay and discharge all or any part of the outstanding bonds, including any interest on the bonds in arrears or about to become due within three years from the date of the refunding bonds;

(2) avoid or terminate any default in the payment of interest on and principal of the bonds to reduce interest costs or effect other economies; or

(3) modify or eliminate restrictive contractual limitations appertaining to the issuance of refunding bonds or for any combination of the purposes permitted by the provisions of this section.

C. Refunding bonds shall be authorized by a resolution adopted by the affirmative vote of not less than a majority of all members of the board. Any bonds that are refunded under the provisions of this section shall be paid at maturity or on any permitted prior redemption date in the amounts, at the times and places and, if called prior to maturity, in accordance with any applicable notice provisions, all as provided in the proceedings authorizing the issuance of the refunded bonds or otherwise appertaining to the bonds being refunded, except for any bonds that are voluntarily surrendered for exchange or payment by the holder. Refunding bonds may be delivered in exchange for the outstanding bonds refunded or may be sold at either public or private sale. The provisions of the Community Service District Act [4-54-1 to 4-54-5 NMSA 1978] shall not apply to any refunding bonds of any district.

History: 1953 Comp., § 75-18-42, enacted by Laws 1967, ch. 187, § 3; 1978 Comp., § 73-21-45; 2009, ch. 241, § 14.

The 2009 amendment, effective June 19, 2009, in Subsection A, after "may be refunded", added "in the name of the district issuing the bonds being refunded" and after "or any successor", deleted "thereof, in the name of the district issuing the bonds being refunded, by" and added "bonds"; in Subsection B, changed "issuance of bonds to" to "issuance of refunding bonds shall be to"; in Paragraph (1) of Subsection B, after "refunding bonds", deleted "and for the purpose of avoiding or terminating"; in Paragraph (2) of Subsection B, after "other economies; or", deleted "of modifying or eliminating"; and in Paragraph (3) of Subsection B, changed "issuance of additional bonds or to any system appertaining thereto or" to "issuance of refunding bonds or"; and at the end of the sentence, added "permitted by the provisions of this section".