(a) To the immediate payment and retirement of the obligations being refunded; or

(b) Deposited in trust to provide for the payment and retirement of the obligations being refunded, including the interest thereon, and to pay interest on the refunding bonds prior to the retirement of the obligations being refunded. Money in any such trust fund may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, or obligations of any agency or instrumentality of the United States Government, or in certificates of deposit issued by a bank or trust company located in the State of Mississippi, if such certificates shall be secured by a pledge of any of said obligations having an aggregate market value equal to one hundred twenty percent (120%) of the principal amount of the certificates so secured. Nothing herein shall be construed as a limitation on the duration of any deposit in trust for the retirement of obligations being refunded, but which shall not have matured and which shall not be presently redeemable.

Prior to the issuance of refunding bonds under this section no findings shall be required of the pollution authority under Section 49-17-111. In lieu of the petition required by Section 49-17-121, the governing board shall file with the board a petition giving a brief explanation of the proposal to refund the obligations sought to be refunded, and financial statements on the company obligated under the lease/sale. Upon the filing of the petition, the board shall, as soon as practicable, approve the issuance of such refunding bonds, unless it determines that the issuance of such bonds would not be consistent with the purposes of Sections 49-17-101 through 49-17-123; and at any time not exceeding six (6) years following such approval the governing board may proceed with the issuance of such refunding bonds. The refunding bonds issued pursuant to this section shall be subject to all other terms and conditions of Sections 49-17-101 through 49-17-123, except for those provisions which, by their terms, do not apply to such refunding bonds.

It is the intent of the legislature that the terms used in this section shall have the meanings set forth in Section 49-17-101.