§ 90.10 Advance refunding of certain bonds. a. As used in this\nsection:\n 1. The term "escrow contract" shall mean a contract entered into by\nand between a municipality, school district or district corporation and\na bank or trust company pursuant to paragraph i of this section.\n 2. The term "escrow holder" shall mean the bank or trust company\ndesignated as such pursuant to an escrow contract.\n 3. The term "refunding financial plan" shall mean the financial plan\nfor a refunding as set forth in the refunding bond resolution relating\nthereto.\n 4. The term "refunding bonds" shall mean refunding bonds authorized\npursuant to this section.\n 5. The term "refunding bond resolution" shall mean a resolution\nauthorizing the issuance of refunding bonds adopted pursuant to\nparagraph e of this section.\n b. 1. A municipality, school district or district corporation may\nissue serial bonds to refund all or any portion of an issue of\noutstanding serial bonds issued on or after January first, nineteen\nhundred seventy, and, in addition, a municipality or school district may\nissue serial bonds or serial bonds to refund all or any portion of an\nissue of outstanding sinking fund bonds or sinking fund bonds issued on\nor after December fifteenth, nineteen hundred eighty-one and may issue\nsinking fund bonds to refund all or any portion of an issue of\noutstanding serial bonds or sinking fund bonds, in the manner and\nsubject to the limitations and conditions set forth in this section. The\nprincipal amount of refunding bonds shall not exceed an amount\nsufficient to pay the sum of (a) the principal amount of the bonds to be\nrefunded, which is outstanding as of the date of issue of the refunding\nbonds, (b) the aggregate amount of unmatured interest payable on the\nbonds to be refunded to and including either the date or dates such\nbonds mature or, if such bonds are to be called for redemption prior to\ntheir maturities, the date or dates set for such redemption in\naccordance with the refunding financial plan, (c) redemption premiums,\nif any, payable on the bonds to be refunded as of such redemption date\nor dates, and (d) costs and expenses incidental to the issuance of the\nrefunding bonds, including the development of the refunding financial\nplan, and of executing and performing the terms and conditions of the\nescrow contract and all fees and charges of the escrow holder. In the\nevent a municipality or school district issues bonds to refund sinking\nfund bonds, and such refunding has the effect of permitting the\nmunicipality or school district to withdraw assets from a sinking fund\nestablished for such refunded bonds, then such assets shall be used to\npay principal and interest on either such refunded bonds or other bonds\nof such municipality or school district.\n 2. * (a) Refunding bonds shall be issued only in the event that the\npresent value of the total payments of both principal and interest to\nbecome due on the refunding bonds, and deducting any accrued interest or\npremium received by the issuer and not used to pay the principal of or\ninterest on the bonds to be refunded or costs of issuance of the\nrefunding bonds, excluding all such principal and interest payments to\nbe made from income received as a result of the investment of the\nproceeds from the sale of the refunding bonds, shall be less than the\npresent value of the principal and interest payments to become due at\ntheir stated maturities on the principal amount of bonds to be refunded\nwhich are outstanding as of the date of the issue of the refunding bonds\nafter deducting therefrom all costs and expenses incidental to the\nissuance of the refunding bonds, including the development of the\nrefunding financial plan, and of executing and performing the terms and\nconditions of the escrow contract and all fees and charges of the escrow\nholder, but only to the extent such costs and expenses are not paid from\nthe proceeds of the refunding bonds
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