§ 6691 Refunding Bond Requirements

• •New bonds can only be given out when the old ones are due or almost due.
• •If the old bonds can't be paid back early, the people who own them must agree to it.
• •This is about swapping old debt for new debt, but only under certain rules.

Imagine you owe your friend $100, but you can't pay it back yet. You ask if you can borrow $100 from someone else to pay your friend later.

The law says you can only do this if your friend agrees or if the $100 is almost due. It’s like getting a new loan to pay off an old one, but only if the old one is ready to be paid.