AGO Opinion Topics: ADVANCE REFUNDING

(1) Prior to applying the proceeds derived from the sale of advance refunding bonds to the purposes for which such bonds shall have been issued, those proceeds may be invested in "government obligations" as defined in RCW 39.53.010. (2) Under RCW 39.53.090, the issuer of general obligation bonds issued to refund voter general obligation bonds may increase the principal amount of annual maturities over that of the bonds to be refunded for the purpose of rounding out maturities to the nearest $5,000

In establishing the principal amounts of annual maturities for advance refunding bonds issued to refund voted general obligation bonds, under RCW 39.53.090, the issuer may increase the principal amount of any maturity above the level of the corresponding maturity of the issue to be refunded where the combined estimated principal and interest requirements for such maturity year of the refunding bonds, including such increased principal amount, will not exceed the combined principal and interest requirements for the corresponding maturity year of the bonds being refunded, and such maturity of the refunding bonds may be further increased in order to round it out to the nearest $5,000.