§ 78. Refunding bonds.

The town council shall have the power and authority, without reference to a vote of the people, to provide by ordinances for the issuance of new bonds, for the redemption and liquidation of any lawfully issued bonds, when they fall due, become subject to call, or can for any reason be refunded or redeemed. Said new bonds shall not exceed in amount, the original bonds to be redeemed, liquidated, or refunded, may be registered, serial, or coupon, and shall be sold at not less than par, to the highest bidder for cash, provided no such new bonds shall bear a higher rate of interest than six per centum per annum [and such bonds] so issued shall be used only in the payment of the old bonds, which are subject to call, redemption or can otherwise be refunded or redeemed. Such bonds shall be payable in lawful money of the United States and a sinking fund shall be created and maintained sufficient to redeem such bonds at maturity, and shall be applied to such redemption and to no other purpose.