(a) The governing body is authorized and empowered to prepare a plan of debt reorganization, which may include the bonded or floating indebtedness of the absorbing county, together with any bonded or floating indebtedness of any absorbed county, within ninety (90) days after a consolidation shall have taken place between counties or portions of counties.

(b) The plan of debt reorganization shall be subject to the review of the state consolidation committee, which must approve the plan of debt reorganization in writing before the governing body of the absorbing county undertakes any funding or refunding. To this end, the state consolidation committee shall have the power and authority to demand the production of any and all county books and records, and to require the counties to submit such proofs and information as, in the judgment of the state consolidation committee, may be necessary or helpful.

(c) Any plan of debt reorganization so prepared may provide for the issuance at one (1) time, or from time to time, of bonds of the absorbing or absorbed county for the following purposes:

(1) Funding any or all warrants, notes or other indebtedness of such unit not evidenced by bonds, and interest accrued on the warrants, notes or other indebtedness, that are outstanding at the close of the fiscal year immediately preceding the authorization of such funding bonds;

(2) Refunding any or all bonds of the absorbing and absorbed counties, and interest accrued thereon, whether such units issued such bonds or assumed or became liable therefor, including bonds not matured, if the unmatured bonds be then redeemable, or if the holder thereof be willing to surrender the same for retirement, and including bonds belonging to the sinking funds of such units; and

(3) To pay any redemption premium upon bonds so refunded and also such expenses as the governing body may deem reasonable and proper for carrying out §§ 5-3-113 — 5-3-121.