§ 100555 Bond Refunding Approval

• •Bonds can be refunded according to the State General Obligation Bond Law (Article 6, starting at Section 16780).
• •Voter approval for the original bonds automatically includes approval for any future refunding bonds.
• •The refund process follows the same rules that apply to the original bond issuance.

The state issues a bond to fund a new highway. A few years later, interest rates drop, so the state wants to replace that old bond with a new, cheaper one.

Because the voters approved the original highway bond, they also approved the swap, so the state can issue a new bond to pay off the old one following the refund rules in the bond law.