Section 55589 Of Article 3. Refunding Bonds From California Water Code >> Division 16. >> Part 4. >> Chapter 2. >> Article 3.

. In lieu of the exchange for outstanding bonds, the refunding bonds may be sold by the board for cash at not less than par and accrued interest, and the proceeds used for the purchase or retirement of the outstanding bonds upon terms agreed upon by the board and the holders of the bonds, but not to exceed par and accrued interest.