New Mexico § 67-3-74 - Refunding bonds

§ 67-3-74. Refunding bonds

A. Transportation bonds issued pursuant to the provisions of Section 67-3-72 NMSA 1978 that are outstanding may be refunded at any time by the state transportation commission

upon: (1) the adoption of a resolution providing for the issuance of refunding bonds; and (2) the issuance of the refunding bonds in an amount the commission determines is

necessary to refund: (a) the principal of the transportation bonds; (b) all unpaid accrued and unaccrued interest on transportation bonds to the normal

maturity date or to selected prior redemption dates of the bonds; (c) any redemption premiums; and (d) all estimated costs, including any commission cost, incidental to the issuance

of the refunding bonds, as may be determined by the commission. B. The principal amount of the refunding bonds may be equal to, less than or greater

than the principal amount of the bonds so refunded. C. A refunding may be effected, whether the bonds to be refunded have then matured

or thereafter mature, either by sale of the refunding bonds and the application of

the proceeds thereof for the payment of the bonds to be refunded or by exchange of

the refunding bonds for the bonds to be refunded; provided that the bonds to be refunded

shall not be canceled without the consent of the holders to surrender their bonds

for payment or exchange prior to the date on which they are payable or if they are

called for redemption prior to the date on which they are by their terms subject to

redemption. D. The refunding bonds issued pursuant to this section shall be payable solely from

the revenues out of which transportation bonds may be payable or solely from those

amounts derived from an escrow as provided in this section, including amounts derived

from the investment of refunding bond proceeds and other legally available amounts

also provided in this section or from any combination of those sources. E. Proceeds of refunding bonds shall either be applied immediately to the retirement

of the bonds being refunded or be placed in escrow in a commercial bank or trust company

that possesses and exercises trust powers. The escrowed proceeds may be invested in short-term securities, long-term securities

or both.