Section 9-21-901 - Authorization to issue general obligation refunding bonds - Modification of outstanding obligation(a) Any local government has the power and is authorized to issue, by resolution, general obligation refunding bonds to refund outstanding obligations heretofore or hereafter lawfully issued or assumed by the local government, and to provide for the rights of the holders thereof and to secure such bonds as provided in this part and part 1 of this chapter.(b) General obligation refunding bonds issued hereunder and secured by the full faith and credit and unlimited taxing power of the local government shall be for the purpose of: (1) Refunding outstanding obligations which are secured by a pledge of the full faith and credit and unlimited taxing power of the local government;(2) Refunding outstanding obligations secured by a pledge of revenues in addition to the full faith and credit pledge; or(3) Refunding outstanding obligations secured solely by the revenues of a public works project.(c) General obligation refunding bonds may be issued to refinance more than one (1) issue of outstanding obligations, notwithstanding that such obligations may have been issued at different times.(d) The resolution authorizing general obligation refunding bonds may also provide for other bonds to be issued jointly with such refunding bonds.(e) For purposes of this chapter, the modification of an outstanding obligation must be deemed a refunding of the modified obligation, and such refunding must be required to comply with this chapter, if the modification is of such significance that the obligation would be deemed to be reissued for federal tax law purposes, whether or not the outstanding obligation is tax-exempt for purposes of federal tax laws. However, an outstanding obligation is not significantly modified and does not rise to the level of a state law reissuance if the obligation allows for and contemplates a modification of the rate of interest of the outstanding obligation at any time during its existence.Amended by 2022 Tenn. Acts, ch. 822, s 4, eff. 4/14/2022.Amended by 2021 Tenn. Acts, ch. 128, s 21, eff. 4/13/2021.Acts 1986, ch. 770, § 9-1.