Section 43737 Of Article 3. Refunding Indebtedness From California Government Code >> Division 4. >> Title 4. >> Chapter 4. >> Article 3.

. The proceeds from the sale of the bonds shall be applied by the treasurer to the satisfaction of the judgment or the refunding of the indebtedness for which the bonds were issued, or the bonds may be exchanged at their par value for the evidences of indebtedness to be refunded, at their par value.