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Section -55. Bond fund. <br /> All of the collections for payment of principal of and interest on bonds and related expenses shall <br /> be paid into a district bond or reserve fund and shall be used solely for the payment of the principal of and <br /> interest on the outstanding bonds of the district and related expenses, all as provided in the bond <br /> ordinance. <br /> Section -56. Refunding bonds. <br /> (a) The council may authorize the issuance of bonds to refund any or all of the district bonds <br /> outstanding that have been issued pursuant to this article. The refunding bonds shall be <br /> authorized by a bond ordinance. <br /> (b) Refunding bonds shall not be issued if the total net interest cost to maturity on the refunding <br /> bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to <br /> maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded. <br /> Subject to such limitations, the principal amount of the refunding bonds may be more than, less <br /> than, or the same as the principal amount of the bonds to be refunded. The principal amount of <br /> such refunding bonds shall not count against any maximum amount of bonds authorized in the <br /> original bond ordinance. <br /> (c) The designated costs of issuing refunding bonds shall be paid from proceeds of the refunding <br /> bonds, interest earned on such proceeds, or assessments from the district. However, any interest <br /> or assessments paid for the designated costs shall be added to the total net interest costs to <br /> maturity on the refunding bonds in determining whether the issuance of the refunding bonds <br /> complies with subsection (b). <br /> "Designated costs of issuing the refunding bonds" means any of the following costs and <br /> expenses designated by the council in the bond ordinance authorizing the issuance of the <br /> refunding bonds: <br /> (1) AI I expenses incident to the cal ling, retiring, or paying of the bonds to be refunded and <br /> incident to the issuance of refunding bonds, including the charges of any agent in <br /> connection with the issuance of the refunding bonds or the redemption or retirement of <br /> the bonds to be refunded; <br /> (2) 'The interest upon the refunding bonds from the date of sale of the refunding bonds to the <br /> date oP payment of the bonds to be refunded or the date upon which the bonds to be <br /> refunded will be paid pursuant to call or agreement with the holders of the bonds; <br /> (3) Any premium necessary in the calling or retiring of the bonds to be refunded: <br /> (4) Any insurance premium or fee payable to the issuer of a bond insurance policy or letter of <br /> credit insuring all or part of the principal and/or interest due on the refunding bonds; and <br /> (5) Any other incidental expenses related to the issuance or carrying of the refunding bonds <br /> or the redemption or refunding of the bonds to be refunded. <br /> (d) The saving achieved through the issuance of refunding bonds shall be used by the council to <br /> reduce the assessment levied in the district. <br /> At the time the council authorizes the issuance of refunding bonds, the council also shall reduce <br /> the assessments levied in the district. The reduction shall be made through an ordinance of <br /> consideration pursuant to Article 4. <br /> Section -57. Prohibition on issuance of general obligation bonds secured by general credit. <br /> No general obligation bonds secured by the county's general credit shall be issued to finance the <br /> <br /> costs of improvements identified in an ordinance establishing a district or pay for the incidental expenses <br /> <br /> of a district. <br /> 17 <br /> <br />