§ 11-54-105 — Limitations upon issuance

No public securities may be refunded
under this article unless the holders thereof voluntarily surrender them for
exchange or payment, or unless they either mature or are callable for prior
redemption under their terms within ten years from the date of issuance of the
refunding public securities. Provision shall be made for paying the public securities
within said period of time. No maturity of any public security refunded may be
extended over fifteen years, nor may the net effective interest rate of the issue of
refunding securities be increased to any rate exceeding the maximum net effective
interest rate authorized by the governing body. The principal amount of the
refunding public securities may exceed the principal amount of the refunded public
securities if the aggregate principal and interest costs of the refunding public
securities do not exceed such unaccrued costs of the public securities refunded,
except to the extent any interest on the public securities refunded in arrears or
about to become due is capitalized with the proceeds of refunding public securities.
The principal amount of the refunding public securities may also be less than or the
same as the principal amount of the public securities being refunded so long as
provision is duly and sufficiently made for their payment. The limitations of this
section shall not apply to the refunding of public securities in order to avoid default.

Legislative History

Source: L. 63: p. 888, � 5. C.R.S. 1963: � 125-8-5. L. 70: p. 109, � 4.