Section 53555 Of Article 9. Refunding Of Bonded Indebtedness Of Local Agencies From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 3. >> Article 9.
53555
. Refunding bonds issued pursuant to this article may be
exchanged for the bonds to be refunded on such basis as the
legislative body determines is for the benefit of the local agency
but in no case on the basis that the principal amount of refunding
bonds exceeds the principal amount of the bonds to be refunded plus
the costs of issuing the refunding bonds. As an alternative to
exchanging the refunding bonds for the bonds to be refunded, the
legislative body may sell the refunding bonds at public or private
sale for not less than their par value. The proceeds of any sale of
refunding bonds for cash shall be placed in the treasury of the local
agency to the credit of a fund to be established for the purpose of
refunding the bonds to be refunded, which fund shall be designated
the "funding fund," and such proceeds shall be applied only as
permitted by this article.