§ 90661 Refunding Bonds Exemption

• •Refunding bonds are not considered new debt, so they don’t need voter approval.
• •The government can decide to pay back these bonds early if they want.
• •The rules for paying back early are set when the bonds are first issued.

Imagine the city took out a loan to build a park but later finds a better deal with lower interest rates.

The city can take out a new loan (refunding bonds) to pay off the old one without asking voters for permission. They can also choose to pay it back early if they have the money.