SECTION 53A. Refunding bonds; issuance; proceeds; terms; report

The state treasurer may, upon request of the governor, issue and sell refunding bonds of the commonwealth in an amount to be specified by the governor from time to time for the purpose of paying, at maturity or upon acceleration or redemption, any bonds of the commonwealth then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of maturity, acceleration or redemption of such bonds; provided, however, that the state treasurer shall not issue any such refunding bonds unless the state treasurer shall find that the present value, discounted at such rate as the state treasurer shall deem appropriate, of the principal and interest payments due on the refunding bonds is less than the present value, discounted at such rate, of the principal and interest payments to be paid, from the proceeds of such refunding bonds and investment earnings thereon, on the bonds to be refunded. In addition to and without compliance with the foregoing, the state treasurer may, upon request of the governor, issue and sell refunding bonds of the commonwealth in an amount to be specified by the governor from time to time for the purpose of substituting fixed-rate bonds for variable-rate bonds or 1 form of variable-rate bonds for another. The proceeds of any refunding bonds authorized by this 11 section may also be used to purchase bonds in lieu of paying such bonds at maturity or redemption, through a tender offer or otherwise, whereupon the state treasurer may declare the purchased bonds to be paid in full. Such refunding bonds may be issued at such time prior to the maturity, acceleration or redemption of the bonds to be refunded thereby as the state treasurer, with the approval of the governor, may deem advisable. The issuance of such bonds, the security therefor, the maturities and other details thereof, the rights of the holders thereof and the rights, duties and obligations of the commonwealth with respect thereto shall be governed by the provisions of this chapter which relate to the issuance of bonds, insofar as such provisions may be appropriate therefor. Without limiting the generality of the foregoing, the provisions of section 49 applicable to sinking funds established with trustees shall apply to the deposit of refunding bond proceeds with a trustee except that such proceeds shall be held for the benefit of the holders of the bonds to be refunded thereby. All bonds issued by the commonwealth as aforesaid shall be designated on their face General Obligation Refunding Bonds or Special Obligation Refunding Bonds, as appropriate, and shall be issued for such maximum term of years, not exceeding 30 years, as the governor may recommend to the general court under Section 3 of Article LXII of the Amendments to the Constitution of the Commonwealth, provided, however, that the bonds of any particular issue shall mature not later than 5 years after the date of final maturity of the bonds being refunded by such issue; and provided, further, that the debt service on such refunding bonds shall be charged to the various budgeted funds of the commonwealth in proportion to the principal amounts being refunded.

The state treasurer shall file a report with the house and senate committees on ways and means not later than 30 days after the sale of any refunding bonds issued under this section. Said report shall include written documentation of compliance with this section, including, but not limited to, the issue or issues to be refunded, the projected dollar savings and the projected present value savings.