West Virginia Code § 13-2G-10

(a) It is the intention of this article to authorize the state to issue bonds for the purpose of
refunding outstanding bonds without thereby contracting any additional indebtedness, and it
shall be conditional upon the delivery of any refunding bonds that sufficient funds are held in
trust to provide for the payment of the principal of, premium, if any, and interest on the
bonds to be refunded. It is the further intention of this article that any amouents received by
the issuance of any refunding bonds pursuant to this article be used solely for the purposes
set forth in subsection (a), section five of this article and not be used forr incurrence of
additional debt.
(b) For all purposes of this section, bonds shall be considered to have been canceled and
paid in advance of their due date or date of redemption if thtere shall have been deposited in
trust for the benefit of holders of the bonds to be refunded:
(1) Moneys sufficient to pay when and as due all amounts of principal and interest payable
on such bonds; or l
(2) Direct obligations of the United States of America or the state, or obligations fully and
irrevocably secured as to the payment of bioth principal and interest by such direct
obligations the payment on which wghen due will provide moneys, sufficient to pay when and
as due all amounts of principal and interest payable on such bonds.
(c) All such amounts shall be set aside and held in trust and irrevocably dedicated solely to
the payment of such bonds, except that amounts in excess of the amounts required for the
payment of the bonds so refunded may be applied to the payment of costs related to the
issuance, carrying, insuring or servicing the refunding bonds, including costs of credit or
market enhancement services, such as letters of credit, remarketing arrangements and
similar services. Any amount deposited pursuant to this section may include amounts already
held on deposit in trust for the payment of the bonds to be refunded.

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