(a) General rule.--Subject to the provisions of the outstanding bonds, notes or obligations evidencing lease rental debt and subject to the provisions of this subchapter, a local government unit may refund any outstanding debt, in whole or in part, at any time and may refund any outstanding notes with bonds or bonds with notes.

(b) Authorized purposes.--The refunding may be for any one or more of the following purposes:

(1) Reducing total debt service over the life of the series.

(2) Reducing the annual debt service in any particular year or years by extending the life of the issue subject to the limitations imposed by section 8247 (relating to special limitation on refunding of funding debt).

(3) Eliminating any covenant or restriction in or applicable to any outstanding series or issue of bonds or notes determined by the local government unit to be unduly burdensome or restrictive.

(4) Refunding any maturity or maturities or any portions thereof to a later date subject to the limitations imposed by section 8247.

(5) Substituting bonds for notes or bond anticipation notes or substituting notes for bonds.

(6) Adjusting lease rentals upon refunding of lease rental debt for any one or more of the foregoing purposes.

It is immaterial whether or not any such refunding under paragraph (2), (3), (4) or (5) increases the total debt service payable over the life of the series.

(c) Definition.--As used in this section, the term "refund" and its variations shall mean the issuance and sale of obligations, the proceeds of which are used or are to be used for the payment or redemption of outstanding obligations upon or prior to maturity.

Cross References. Section 8241 is referred to in sections 8243, 8247, 8249 of this title.