1. Any bonds of the Board or University issued hereunder or pursuant to any other act and payable from any pledged revenues may be refunded by the Board on its behalf or on behalf of the University by the adoption of a resolution or resolutions by the Board and by any trust indenture or other proceedings appertaining thereto, authorizing the issuance of bonds to refund, pay and discharge all or any part of such outstanding bonds of any one or more or all outstanding issues:

(a) For the acceleration, deceleration or other modification of the payment of such obligations, including any interest thereon in arrears, or about to become due for any period not exceeding 3 years from the date of the refunding bonds;

(b) For the purpose of reducing interest costs or effecting other economies;

(c) For the purpose of modifying or eliminating restrictive contractual limitations appertaining to the issuance of additional bonds, otherwise concerning the outstanding bonds, or otherwise relating to any facilities appertaining thereto; or

(d) For any combination of the purposes stated in paragraphs (a), (b) and (c).

2. Nothing contained herein nor in any other law of this state shall be construed to permit the Board to call on its behalf or on behalf of the Board or University bonds or other securities now or hereafter outstanding for prior redemption in order to fund or refund such securities or in order to pay them prior to their stated maturities, unless the right to call such securities for prior redemption was specifically reserved and stated in such securities at the time of their issuance, and all conditions with respect to the manner, price and time applicable to such prior redemption as set forth in the proceedings authorizing the outstanding securities are strictly observed. It is the intention of this subsection to make it certain that the holder of no outstanding bond or other security may be compelled to surrender such security for funding or refunding prior to its stated maturity or optional date of prior redemption expressly reserved therein, even though such funding or refunding might result in financial benefit to the Board or University.

3. Notwithstanding the provisions of subsection 2 of this section or of any other law, this state, acting by and through the State Board of Finance, may agree with the University or its Board to exchange any outstanding bonds or other securities of the University or the Board and held by the State, or any agency, corporation, department or other instrumentality of the State, for funding or refunding bonds or other funding securities of the University or the Board, or otherwise to surrender at such price and time and otherwise upon such conditions and other terms and in such manner as may be mutually agreeable such outstanding bonds or other securities to the Board for funding or refunding at any time prior to their respective maturities or to any date as of which the Board has the right and option to call on its behalf or on behalf of the University such outstanding bonds or other securities for prior redemption as expressly provided in the outstanding securities and any resolution, trust indenture or other proceedings authorizing their issuance.

4. Any provision herein concerning the refunding of outstanding bonds includes any outstanding securities evidencing long-term loans to the University or the Board regardless of whether such securities are designated as bonds, certificates, single certificates or otherwise.

(Added to NRS by 1967, 19; A 1969, 1602)