1. The Board may, at the request of the State Treasurer, issue state securities to refund any state securities issued pursuant to this chapter in the manner prescribed by and subject to the limitations of the State Securities Law for refunding.

2. No state securities may be issued pursuant to this section without the concurrence of the municipality which issued the municipal or revenue securities purchased with the proceeds of the state securities to be refunded. At or before the time state securities are issued pursuant to this section, the State Treasurer and the municipality must agree as to the method of paying any costs incurred, making any cash deposits required for the refunding escrow, and allocating any savings achieved in connection with the refunding. Such a method may include an exchange of:

(a) Municipal securities acquired and held by the State Treasurer pursuant to this chapter for new securities validly issued as general obligations by the municipality or municipalities.

(b) Revenue securities acquired and held by the State Treasurer pursuant to this chapter for new securities validly issued by the municipality or municipalities.

New securities received from a municipality by the State Treasurer must be held and payments received thereon applied in the same manner as required by this chapter for the original municipal or revenue securities.

3. The principal amount of state securities which have been refunded pursuant to this section must not be considered in computing compliance with the limitation of subsection 2 of NRS 350A.150, but outstanding state securities issued pursuant to this section are subject to that limitation.

4. NRS 350A.160 does not apply to state securities issued pursuant to this section.

(Added to NRS by 1983, 1034; A 1991, 180; 1993, 2321)