§ 91.00 Refunding of capital notes. a. Where serial bonds have not
been issued to finance any part of an object or purpose and such object
or purpose has been financed by the issuance of a capital note, such
capital note may be refunded by the issuance of serial bonds pursuant to
this section.

b. The last installment of bonds issued pursuant to this section shall
mature not later than the expiration of the maximum period of probable
usefulness of the object or purpose for which the capital note was
issued. Such period shall be that which was in effect at the time the
capital note was originally issued unless such period has been
subsequently shortened, in which event the shorter period in effect at
the time of the issuance of the bonds shall apply.

c. The first installment of bonds issued pursuant to this section
shall mature not later than eighteen months after the date of issuance
of such bonds or two years after the date of original issuance of such
notes, whichever is the earlier. However, if bond anticipation notes are
issued in anticipation of bonds authorized to be issued pursuant to this
section, the provisions of section 23.00 of this chapter shall apply
with respect to the issuance, maturity and renewal thereof provided that
the date of original issuance of the capital note which is being
refunded shall be deemed to be the original date of issue of such bond
anticipation notes and provided further that such bond anticipation
notes or the renewal thereof shall not extend beyond five years from
such original date of issue, and in such case, the first installment of
such bonds may, in the alternative, be made to mature not later than
five years from the date of the original issuance of such capital note.
No annual installment of such bonds shall be more than fifty per centum
in excess of the smallest prior installment.

d. Bonds issued pursuant to this section shall not be designated as
refunding bonds but shall contain a recital that they are issued
pursuant to this section. The provisions of this chapter, including but
not limited to sections 33.10, 34.00, 35.00, 36.00, 37.00, 38.00 and
107.00, relating to the authorization, form and contents, sale,
execution and issuance of serial bonds, other than refunding bonds
issued pursuant to section 90.00 of this chapter, shall apply to the
authorization, form and contents, sale, execution and issuance of such
bonds issued pursuant to this section. The bond resolution shall contain
a description of the capital note to be refunded and a statement of the
maximum period of probable usefulness of the object or purpose for which
the capital note was issued and which was in effect on the date of
issuance of the note and that which will be in effect on the date of
issuance of the bonds.

e. Capital notes issued by a municipality to provide current funds for
a down payment in connection with the financing of capital improvements
or equipment, required pursuant to the provisions of paragraph b, or
subdivision one of paragraph c, of section 107.00 of this chapter, shall
not be refunded.