Paragraph III. - Refunding of outstanding indebtedness.

The governing authority of any county, municipality, or other political subdivision of this state may provide for the refunding of outstanding bonded indebtedness without the necessity of a referendum being held therefor, provided that neither the term of the original debt is extended nor the interest rate of the original debt is increased. The principal amount of any debt issued in connection with such refunding may exceed the principal amount being refunded in order to reduce the total principal and interest payment requirements over the remaining term of the original issue. The proceeds of the refunding issue shall be used solely to retire the original debt. The original debt refunded shall not constitute debt within the meaning of paragraph I of this section; but the refunding issue shall constitute a debt such as will count against the limitation on debt measured by ten percent of assessed value of taxable property as expressed in paragraph I of this section.