(1) Any revenue obligations or
general obligations issued or incurred by any public body may be refunded without
an election by the public body issuing or incurring the same or any successor
thereof, except as otherwise provided by this section, in the name of the public
body which issued or incurred the obligation or indebtedness being refunded, but
subject to provisions concerning their payment and to any other contractual
limitations in the proceedings authorizing their issuance or otherwise appertaining
thereto.
(2) (a) The bonded indebtedness of any school district outstanding at the
time of the inclusion of all such district's territory in another district by
reorganization, consolidation, dissolution, or any other lawful means may be
refunded by action of the governing body of the district, including such territory at
the time of such refunding, whether or not such indebtedness has been assumed by
the district including such territory.
(b) When an entire school district having outstanding bonded indebtedness
has been divided and parts thereof included within two or more other districts by
any lawful means, the refunding of such indebtedness shall require affirmative
action by a majority of the members of the governing body of each of the districts
within which any part of the territory of such district owing said indebtedness is
then included, except as is provided in this article to the contrary.
(c) The bonded indebtedness of any school district outstanding at the time
any territory of said district is detached therefrom by any lawful means, and which
district has retained its lawful corporate existence subsequent to the detachment
of such territory from said district, may be refunded by action of the governing body
of such district from which territory has been detached with or without concurrence
or action by the governing body of any district within which all or any part of said
detached territory is included, and such districts from which territory has been
detached and which retain their corporate existence subsequent to detachment are
specifically exempted from the requirements and provisions of paragraph (b) of this
subsection (2).
(3) (a) General obligation refunding bonds may be issued to refund all or any
portion of one or more outstanding general obligations of a public body, but no two
or more outstanding general obligations, or portions thereof, may be refunded by a
single issue of refunding bonds unless the taxable property upon which tax levies
are being made for payment of each such outstanding general obligation is
identical to the taxable property on which such levies are being made for the
payment of all other outstanding general obligations proposed to be refunded by
such single issue of refunding bonds, and the same tax and debt limitations, if any,
applicable to each obligation proposed to be refunded by such single issue of
refunding bonds are also applicable to all other obligations to be refunded by such
single issue.
(b) Refunding revenue bonds may be issued to refund all or any portion of
one or more outstanding revenue obligations, but no two or more outstanding
revenue obligations may be refunded by a single issue of refunding revenue bonds
unless all of the outstanding revenue obligations could be issued as a single
obligation at the time of the refunding. Subject to the provisions and limitations of
section 11-56-106, general obligation refunding bonds may be issued to refund all or
any portion of one or more outstanding revenue obligations, but no two or more
outstanding revenue obligations may be refunded by a single issue of general
obligation refunding bonds unless the property subject to taxation for the purpose
for which each outstanding revenue obligation to be refunded was issued is
identical to the property subject to taxation for the purpose for which each other
outstanding revenue obligation to be refunded with such single issue of refunding
revenue bonds was issued, and the tax and debt limitations, if any, applicable to
taxes levied for general obligations issued for all of the purposes for which the
outstanding revenue obligations to be refunded with such single issue of general
obligation bonds were issued are the same.
(4) Refunding bonds may be delivered in exchange for the obligations to be
refunded or may be sold in such manner as determined by the governing body in the
best interests of the public body and the proceeds of said sale applied as provided
in this article. Said bonds may be sold at, above, or below the par value thereof if
the price thereof will not result in a net effective interest rate in excess of the
maximum net effective interest rate authorized by the governing body.
(5) No revenue obligation or general obligation may be refunded unless the
holder thereof voluntarily surrenders the same for exchange or payment or the said
obligations either mature or are callable by the issuer for prior redemption under
their terms within twenty years from the date of issuance of the refunding bonds,
and provision shall have been made in said refunding for paying the obligations
being refunded within said period of time.
(6) (a) A public body shall be authorized to utilize an escrow supplement in
accomplishing any refunding procedures undertaken pursuant to this article;
except where the purpose of the refunding is to accomplish the purposes
designated in section 11-56-104 (1)(b), (1)(c), or (1)(d), then:
(I) Where general obligations constituting a debt or indebtedness of the
public body are to be refunded, such escrow supplement shall not exceed the
aggregate principal and net interest cost of the obligations to be refunded less the
aggregate principal and net interest cost of the refunding bonds, other than special
obligation refunding bonds;
(II) Where general obligation refunding bonds are proposed to be issued to
refund revenue obligations, pursuant to section 11-56-106, no escrow supplement in
excess of the amount by which the principal amount of the obligations to be
refunded exceeds the principal amount of the refunding bonds, other than special
obligation refunding bonds, shall be permitted unless approved as a part of the
refunding question submitted to the electors.
(b) Neither the principal of nor the interest on any special obligation
refunding bonds issued in conjunction with any other refunding bonds pursuant to
this article shall be considered when making any of the computations required by
this subsection (6).
(c) The provisions of this subsection (6) shall not apply to the refunding
bonds where the indebtedness refunded was incurred pursuant to subsection (3) of
section 6 of article XI of the state constitution.
(7) Whenever any school district issues refunding bonds under the provisions
of this article, the governing body shall provide for registration of the bonds in the
manner provided for other school bonds by section 22-42-121, C.R.S., which
registration shall have the same legal effect as specified in section 22-42-121,
C.R.S.
(8) Any school district which issues refunding bonds under the provisions of
this article shall file a report within sixty days after the issuance of said bonds with
the state board of education. The report shall indicate the principal amount of
obligations refunded, the net effective interest rate of both the obligations
refunded and the refunding bonds, the net interest cost of both the obligations
refunded and the refunding bonds, all school district costs incident to the issuance
of refunding bonds, including those of the escrow agent, and such other items as
may be determined by the state board of education.
(9) The issuance of refunding bonds by any public body for purposes of and
in the manner authorized by this article, or by the provisions of any other law shall
not be interpreted to be the creation of debt or indebtedness such that the same
would require the approval at an election in accordance with the constitution or
laws of this state, and no such approval shall be required for the issuance of such
refunding bonds, except as specifically provided by this article. Any obligations
which have been refunded, as provided in this article, either by immediate payment
or redemption and retirement or by the placement of proceeds of refunding bonds
in escrow, shall not be deemed outstanding for purposes of determining
compliance with debt limitations or for determination of the relative position of the
pledge or lien on any fund or moneys held by the refunding bonds from and after
the date on which sufficient moneys are placed either with the paying agent of such
outstanding obligations for the purpose of immediately paying or redeeming and
retiring such bonds or with the escrow agent for the purpose of paying or
redeeming and retiring such bonds at a designated future date. Sufficiency of any
moneys for said purposes shall be determined as provided in section 11-56-109.