All such refunding bonds may be exchanged dollar for dollar for the bonds to be refunded, or they may be sold as directed by the governing body, and the proceeds thereof shall be applied only to the purpose for which said refunding bonds were issued.

History: Laws 1927, ch. 128, § 6; C.S. 1929, § 90-1106; 1941 Comp., § 7-629; 1953 Comp., § 11-6-28; Laws 1963, ch. 234, § 4.

Authority of school district. — This act (Sections 6-15-11 to 6-15-19 NMSA 1978) authorizes a school district to issue refunding bonds for sale enforceable in the hands of the purchaser. Southwest Sec. Co. v. Board of Educ., 1936-NMSC-008, 40 N.M. 59, 54 P.2d 412.

Bona fide purchaser's right to rely on certificate. — A bona fide purchaser of a bond purported to be a school refunding bond has a right to rely on the certificate that exchange of the bonds had been effectuated and refunded bonds destroyed, made by authorized officers, and the school board is estopped to assert falsity of certificate. Estancia Bd. of Educ. v. Woodmen of World, 77 F.2d 31 (10th Cir. 1935).

Estoppel of school district raising invalidity of bond. — A school district is estopped from setting up the invalidity of bonds as against a bona fide purchaser on ground that the old bonds had not been canceled and record made of such acts where the bonds recited that all statutory requirements had been fulfilled and the board had certified to delivery and cancellation of old bonds. Southwest Sec. Co. v. Board of Educ., 1936-NMSC-008, 40 N.M. 59, 54 P.2d 412.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Power of governmental unit to issue bonds as implying power to refund them, 1 A.L.R.2d 134.

20 C.J.S. Counties § 225; 64 C.J.S. Municipal Corporations § 1679; 79 C.J.S. Schools and School Districts § 370.