§ 11-54-106 — Use of proceeds of refunding public securities

(1) The proceeds
of refunding public securities shall either be immediately applied to the retirement
of the public securities to be refunded or be placed in escrow in any state or
national bank within the state which is a member of the federal deposit insurance
corporation to be applied to the payment of the public securities upon their
presentation therefor; but, to the extent any incidental expenses have been
capitalized, such security proceeds may be used to defray such expenses; and any
accrued interest and any premium appertaining to a sale of refunding public
securities may be applied to the payment of the interest thereon and the principal
thereof, or both interest and principal, or may be deposited in a reserve therefor, as
the governing body may determine.

(2) No such escrow shall necessarily be limited to proceeds of refunding
public securities but may include other moneys available for its purpose. Any
escrowed proceeds, pending such use, may be invested or reinvested in securities
meeting the investment requirements established in part 6 of article 75 of title 24,
C.R.S. Such escrowed proceeds and investments, together with any interest to be
derived from any such investment, shall be in an amount at all times sufficient as to
principal, interest, any prior redemption premium due, any charges of the escrow
agent payable therefrom to pay the public securities being refunded as they
become due at their respective maturities or due at designated prior redemption
dates in connection with which the governing body of the issuer shall exercise a
prior redemption option. No purchaser of any public security issued under this
article shall in any manner be responsible for the application of the proceeds
thereof by the issuer or any of its officers, agents, or employees.

Legislative History

Source: L. 63: p. 888, � 6. C.R.S. 1963: � 125-8-6. L. 89: (2) amended, p. 1106, � 6, effective July 1.