2025 Session
Last amended: 1987 session
§ 447.50 — Refunding Bonds
Plain-Language Summary
This section allows counties, cities, or hospital districts to issue new bonds to pay off older bonds issued under chapter 447. This is called refunding. The governing body can do this by passing a resolution without a public vote.
447.50 REFUNDING BONDS.
A county, city, or hospital district may issue bonds under this chapter by resolution of its governing body to refund bonds issued for the purposes stated in this chapter.
History:
1971 c 844 s 6; 1973 c 123 art 5 s 7; 1987 c 229 art 10 s 1
History: History: 1971 c 844 s 6; 1973 c 123 art 5 s 7; 1987 c 229 art 10 s 1
Practical Notes
Refunding bonds are typically used when interest rates drop, allowing the government to replace high-interest bonds with lower-interest ones and save money. Because refunding does not require voter approval, the governing board can act quickly when market conditions are favorable. The savings benefit taxpayers through lower future tax levies or reduced operating costs.