§ 9523 Refunding Bond Payment Terms

• •Refunding bonds are like new loans to pay off old loans.
• •The money to pay back these new loans comes from the same place as the old loans.
• •The rules for paying back the old loans still apply to the new ones.

Imagine you have a credit card with a high interest rate, and you take out a new credit card with a lower interest rate to pay off the old one.

The new credit card (refunding bonds) is paid off using the same money source (your monthly payments) as the old one. The rules for how you pay it back (like minimum payments) stay the same.