What is a Refund Plan in the context of bond issuance?

A Refund Plan in the context of bond issuance refers specifically to the required submission for refunding bond authorization. This plan outlines the details and rationale for replacing existing bonds with new ones, often with improved terms.

When municipalities consider refunding, they do so to take advantage of lower interest rates, improve cash flow, or restructure debt. The Refund Plan must include key information such as the current debt to be refunded, projected savings, and how it aligns with the municipality's financial goals. This submission is crucial for obtaining the necessary approvals and ensuring compliance with regulations governing bond issuances.

The other options do not accurately represent the purpose of a Refund Plan within the realm of bond issuance. A submission for new bond issuance, an informal recommendation by bond counsel, or a guide for investment strategy do not encapsulate the specific requirements and objectives of a Refund Plan. These distinctions are key to understanding municipal finance and the processes involved in managing debt effectively.