§ 100175 Bond Refunding Approval

• •Voter approval is required for both the first bonds and any later bonds that replace them.
• •The replacement bonds must follow the refunding rules in Article 6 of the State General Obligation Bond Law.
• •This applies to any bonds issued under this chapter, even if they were already refunding bonds.

The state issues bonds to build a new highway. Five years later, interest rates drop, so the state wants to issue new bonds to replace the old ones and save money.

Because the original bonds were approved by voters, the voters also have to approve the new replacement bonds that will pay off the old highway bonds.