Georgia CommonsArticle IX. COUNTIES AND MUNICIPAL CORPORATIONS · Article IX. COUNTIES AND MUNICIPAL CORPORATIONS · Section V. LIMITATION ON LOCAL DEBT
Art. IX, Sec. V, Para. III. Refunding of outstanding indebtedness.
Current through: Including Acts of the 2025 Regular Session of the General Assembly.
The governing authority of any county, municipality, or other political subdivision of this state may provide for the refunding of outstanding bonded indebtedness without the necessity of a referendum being held therefor, provided that neither the term of the original debt is extended nor the interest rate of the original debt is increased. The principal amount of any debt issued in connection with such refunding may exceed the principal amount being refunded in order to reduce the total principal and interest payment requirements over the remaining term of the original issue. The proceeds of the refunding issue shall be used solely to retire the original debt. The original debt refunded shall not constitute debt within the meaning of Paragraph I of this section; but the refunding issue shall constitute a debt such as will count against the limitation on debt measured by 10 percent of assessed value of taxable property as expressed in Paragraph I of this section.
Other notes
- 1976 Constitution.
- Art. IX, Sec. VIII, Paras. III, IV.
- Intent.
- The intention of the framers of the Constitution was that this paragraph should apply to those instances where the bonds are subject to call, or where the bondholders are willing to surrender these outstanding obligations. 1945-47 Op. Att’y Gen. p. 519 (decided under Ga. Const. 1945, Art. VII, Sec. VII, Para. VI; see Ga. Const. 1983, Art. IX, Sec. V, Para. III). ing bonds to pay outstanding bond issues of cities and counties, this paragraph may not be construed to require surrender of outstanding issues which are not subject to call. 1945-47 Op. Att’y Gen. p. 519 (decided under Ga. Const. 1945, Art. VII, Sec. VII, Para. VI; see Ga. Const. 1983, Art. IX, Sec. V, Para. III). Use of bond proceeds and savings
- With reference to issuing of refundgenerated by bond refundings.
- The Georgia Constitution and Georgia statutes do not provide any latitude to use bond proceeds for additional capital expenditures whether or not they are spent on projects which may have been approved by the voters at the time of the original bond referendum. Accordingly, all proceeds generated at closing of the refunding issue should be spent on costs of the refunding or used to pay principal, interest, and premiums on the refunded debt. Furthermore, a new tax levy appropriately sized to retire the new refunding bonds should be provided for prior to issuance of the refunding bonds. If any excess proceeds result from the new tax levy, such excess proceeds shall not be available for transfer to capital projects until all refunding bonds are repaid. 1994 Op. Att’y Gen. No. 94-8.
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Current through: Including Acts of the 2025 Regular Session of the General Assembly.
Text read from 2ga-const-(v2)-2016-pdf.pdf, Volume V2, 2016 edition, pages 1433 to 1434; merge action: carried; file SHA-256 1b27199d8655.
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