(a)      Subject to the approval of the County Executives and County Councils of Montgomery and Prince George's counties of the plan for the issuance of refunding bonds pursuant to the provisions of this section, the WSSC is authorized to borrow money and to issue refunding bonds of the sanitary district from time to time to refund any bonds or notes issued by the sanitary district, at any time outstanding, for the purpose of effecting savings in debt service costs, directly or through any debt restructuring; however, the WSSC may issue refunding bonds only upon a finding that such refunding will result in total savings in debt service costs.

      (b)      Refunding bonds may bear such date or dates, may mature at such time or times not exceeding 40 years from their respective dates, may bear interest at such rate or rates, not to exceed 10 percent per annum, may be made redeemable before maturity upon such terms, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment at such place or places, within or without the State of Maryland, may provide for the replacement of mutilated, destroyed, stolen or lost bonds, and may contain such other terms, conditions and covenants, as may be provided in the resolution or resolutions of the WSSC authorizing the issuance of the refunding bonds. Refunding bonds issued to refund outstanding bonds respecting which front foot benefit charges shall have been levied shall be stated to mature not later than 1 year from the date fixed for the payment of the final installment of such front foot benefit charges. Refunding bonds may be exchanged for bonds being refunded or may be sold at public sale or, if the WSSC shall find and determine that a public sale would be impracticable in effectuating the purpose of the refunding bonds, at a negotiated sale in open meeting, at such price, terms and conditions as the WSSC shall determine to be for the best interest of the sanitary district. At least 45 days prior to the sale or exchange of any refunding bonds, the WSSC shall deliver its plan respecting the issuance of such refunding bonds to the County Executives and County Councils of Montgomery and Prince George's counties and such sale or exchange shall not be made unless such plan is approved by the County Executives and County Councils of each of the 2 counties; provided that if, during the period of 30 days from the date of the delivery of the plan any County Executive or County Council shall have failed to approve or disapprove the plan, such failure shall be deemed an approval of the plan by such County Executive or County Council. The foregoing time periods may be waived by the County Executives and County Councils. In case any officer whose signature or a facsimile of whose signature shall appear on any refunding bond or coupon shall cease to be an officer before the delivery of the refunding bond, the signature or facsimile shall nevertheless be valid and sufficient for all purposes just as if the officer had remained in office until the delivery. Any refunding bonds issued to refund bonds guaranteed as to the payment of principal and interest by Montgomery or Prince George's counties, may be guaranteed in like manner in the form and under the provisions of § 4-101 of this subtitle. Refunding bonds authorized under this section shall be in addition to any other bonds authorized to be issued under this subtitle or any amendments of this subtitle, and shall be included in computing the amount of bonds which may be issued under the 7.0 percent limitation of § 4-101(e) of this subtitle. The provisions of § 4-101(a) of this subtitle exempting from taxation other bonds of the sanitary district shall apply to refunding bonds. Any power expressly granted under this section is not subject to the provisions of any other law or other section of this subtitle in conflict with that power.

      (c)      Proceeds of the refunding bonds, in an amount as determined by the WSSC, may be deposited in trust with a trust company or other banking institution as trustee, in a trust fund established in the name of the sanitary district. Money in the trust fund may be invested and reinvested in direct obligations of, or obligations the principal of and the interest on which are guaranteed by, the United States of America. Money in the trust fund shall be available, as provided by the WSSC, for the payment of all or any part of the principal, interest, and redemption premium, if any, of the bonds or notes, or any of them, being refunded and of the refunding bonds, or any of them, as the WSSC, in its discretion, shall prescribe. Proceeds of refunding bonds shall be so invested and applied as to assure that the principal, interest, and redemption premium, if any, on the bonds or notes being refunded shall be paid in full on their respective maturity, redemption, or interest payment dates. The bonds or notes being refunded which are subject to redemption prior to their stated maturity dates may be called for redemption on the earliest redemption date or at such later date as the WSSC shall determine. Refunding bonds may be issued in one or more series, each series being in whatever principal amount the WSSC determines shall be required to achieve the purpose for the issuance of the refunding bonds, which amount may be in excess of the principal amount of bonds or notes being refunded thereby. All or any part of the refunding bonds may be made payable from money in, and secured by, the trust fund in addition to or in lieu of any other money or security that the WSSC may provide for the payment or security of the refunding bonds.

      (d)      For the purpose of retiring the refunding bonds issued under the provisions of this section and the payment of the interest thereon, there shall be levied annually against all of the assessable property within the sanitary district by the County Councils of Montgomery and Prince George's counties, so long as the bonds are outstanding and unpaid, a tax sufficient to pay the interest on the bonds as it becomes due and to pay the principal and redemption premium, if any, of the bonds at their maturity or redemption; provided that as to any series of refunding bonds issued to refund storm and surface water drainage bonds, the tax shall be levied by the County Council of the respective counties in which the storm or surface water drainage systems provided with the proceeds of the bonds thus being refunded shall be located. Such tax shall be determined, levied, collected and paid over to the WSSC in the manner provided by § 4-105 of this subtitle, and all of the provisions of § 4-105 of this subtitle shall apply to the refunding bonds issued under this section. The WSSC shall make adequate provision for extending to the rate payers of the WSSC the benefit of savings in debt service costs derived through the issuance of any refunding bonds hereunder.

      (e)      Any provisions of law requiring the fixing and collecting of front foot benefit charges for the payment of the principal of and the interest on the outstanding bonds so refunded shall apply to the payment of the refunding bonds issued under this section to refund such outstanding bonds.