Sec. 38.13. Defeasance

Not less than 14 days prior to any proposed act of defeasance, an issuer shall notify the State Comptroller of the entity to which the balance in the sinking fund account relating to the bonds to be defeased shall be transferred and the date by which such transfer shall be accomplished. Unless otherwise specified by the issuer, any securities held in such account shall be sold in accordance with this Part and the proceeds of the sale of the securities shall be transferred to such entity by such date, provided, however, that no such transfer shall be made prior to receipt by the State Comptroller of an opinion of counsel to the issuer that the sinking fund bonds have been defeased or deemed paid under the instrument pursuant to which they were issued or will be defeased or deemed paid upon transfer of the amounts in the sinking fund to the designated entity.