Missouri § 253.280 - Bonds refunded, when — refunding bonds may include interest — how paid.

§ 253.280. Bonds refunded, when — refunding bonds may include interest — how paid.

1.  The revenue bonds issued pursuant to sections 253.210 to 253.280 may be refunded, in whole or in part, under any of the following circumstances:

(1)  When any of the bonds have by their terms become due and payable and there are not sufficient funds in the interest and sinking fund to pay the bonds and the interest thereon;

(2)  When any of the bonds are by their terms callable for payment and redemption in advance of the date of their maturity and shall have been duly called for payment and redemption;

(3)  When any of the bonds are by their terms callable for payment and redemption in advance of the date of maturity and the refunding bonds are sold more than one year prior to the maturity or redemption date of the bonds being refunded, and the proceeds derived from the sale of the refunding bonds shall be deposited in escrow with the state treasurer or a bank or trust company located in the state of Missouri having full trust powers, and such proceeds shall be invested promptly in direct obligations of the United States of America or of its agencies or instrumentalities, or in obligations, the principal of, and interest on, which are guaranteed by the United States of America, which, together with the interest to be earned on such obligations, will be sufficient for the payment of the principal of such bonds, the redemption premium thereon, if any, and interest accrued to the date of maturity or redemption.  Any moneys and obligations which at any time shall be deposited with the state treasurer or with such bank or trust company for the purpose of paying and discharging any of the bonds shall be assigned, for the respective holders of the bonds, and such moneys shall be irrevocably appropriated to the payment and discharge thereof;

(4)  When any of the bonds are voluntarily surrendered by the holders for exchange for refunding bonds.

2.  For the purpose of refunding any bonds issued, including refunding bonds, the department of natural resources may make and issue refunding bonds in such amount as may be necessary to pay off and redeem the bonds to be refunded together with unpaid and past due interest thereon and any premium which may be due under the terms of the bonds, together also with the cost of issuing the refunding bonds.

3.  The refunding bonds shall be sold in the same manner as provided in sections 253.210 to 253.280 for the sale of revenue bonds.

4.  The proceeds of the refunding bonds shall be used to pay off, redeem and cancel such old bonds and interest and the premium, if any due thereon or the refunding bonds may be issued and delivered in exchange for a like par value amount of the bonds for which the refunding bonds were issued, except that no refunding bonds issued pursuant to sections 253.210 to 253.280 shall be payable in more than twenty years from the date of issue or shall bear interest at a rate in excess of fourteen percent per annum.

5.  The refunding bonds may be payable from the same sources as were pledged to the payment of the bonds refunded and, in the discretion of the department of natural resources, may be payable from any other source which under sections 253.210 to 253.280 may be pledged to the payment of revenue bonds.

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(L. 1957 p. 300 § 6, A.L. 1982 S.B. 696)

---- end of effective  28 Aug 1982 ----

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