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Advance Refunding
Like a homeowner who can reduce payments by locking into a lower interest
rate and better terms, government can save substantial dollars by refinancing
existing debt. Advance refunding bonds are issued to pay off outstanding
bonds that are not yet due to be retired. To be eligible, bond series must
be at least one year from becoming callable.
An advance refunding is a procedure by which bonds are refunded early. Typically, this involves the sale of an issue several years prior to the first call date of the issue. The Office of the Treasurer is responsible for assessing the merit of proposed advance refunding issues and authorizing those having a significant beneficial impact. Advance refundings usually are executed to realize debt service savings when new bonds are sold at rates significantly below those of the original issue. 
Oregon Administrative Rules regarding advance refunding
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General Phone 503-378-4000 | State Treasurer's Office Phone 503-378-4329 |
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