(1) Public securities, including
refunding public securities issued under this article and local district college
revenue securities issued under the provisions of article 71 of title 23, C.R.S., shall
bear interest at a rate such that the net effective interest rate of the issue of
refunding public securities or local district college revenue securities does not
exceed the maximum net effective interest rate authorized. Such interest shall be
payable semiannually or annually and evidenced by one or two sets of coupons, if
any, executed with the facsimile or manually executed signature of any official of
the issuer; except that the first coupon appertaining to any public security may
evidence interest not in excess of one year, and such securities may be in one or
more series, may bear such date, may mature at such times not exceeding forty
years from their respective dates, may be designated or redesignated, may be in
such denomination, may be payable in such medium of payment and at such place
within or without the state, including but not limited to the office of any county
treasurer in which the issuer is located wholly or in part, may carry such registration
privileges, may be subject to such terms of prior redemption in advance of maturity
in such order or by lot or otherwise at such time with or without a premium, may be
executed in such manner, may bear such privileges for reissuance in the same or
other denominations, may be so reissued, without modification of maturities and
interest rates, and may be in such form, either coupon or registered, as may be
provided by ordinance of the governing body of the issuer. The governing body may
provide for the subordination of the security of any public securities issued under
this article and the payment of principal and interest thereon, to the extent deemed
feasible and desirable by the governing body, to other public securities issued to
finance facilities appertaining thereto or that may be outstanding when the public
securities thus subordinated are issued and delivered.
(2) The public securities shall never be sold at less than ninety-five percent
of the principal amount thereof and accrued interest thereon to the date of delivery,
nor at a price which will result in a net effective interest rate to the issuer of more
than the maximum net effective interest rate authorized by the governing body.
(3) Public securities may be issued with privileges for conversion or
registration, or both, for payment as to principal or interest, or both; and, where
interest accruing on the public securities is not represented by interest coupons,
the public securities may provide for the endorsing of payments of interest thereon;
and the public securities generally shall be issued in such manner, in such form,
either coupon or registered, with such recitals, terms, covenants, and conditions,
and with such other details as may be provided by the governing body, except as
otherwise provided in this article.
(4) Subject to the payment provisions specifically provided in this article, the
said public securities, any interest coupons thereto attached, and any temporary
public securities shall be fully negotiable within the meaning and for all the
purposes of investment securities (uniform commercial code), article 8 of title 4,
C.R.S., except as the governing body may otherwise provide; and each holder of
each such public security, by accepting such security, shall be conclusively deemed
to have agreed that such public security, except as otherwise provided, is and shall
be fully negotiable within the meaning and for all the purposes of investment
securities (uniform commercial code), article 8 of title 4, C.R.S.
(5) Notwithstanding any other provision of law, the governing body in any
proceedings authorizing public securities under this article:
(a) May provide for the initial issuance of one or more public securities,
called public security in this subsection (5), aggregating the amount of the entire
issue, or any designated portion thereof;
(b) May make such provision for installment payments of the principal
amount of any such public security as it may consider desirable;
(c) May provide for the making of any such public security, payable to bearer
or otherwise, registrable as to principal or as to both principal and interest and,
where interest accruing thereon is not represented by interest coupons, for the
endorsing of payments of interest on such public securities; and
(d) May further make provision in any such proceedings for the manner and
circumstances in and under which any such public security may in the future, at the
request of the holder thereof, be converted into public securities of smaller
denominations, which public securities of smaller denominations may in turn be
either coupon public securities or public securities registrable as to principal or as
to both principal and interest.
(6) If lost or completely destroyed, any public security authorized in this
article may be reissued in the form and tenor of the lost or destroyed public
security upon the owner furnishing, to the satisfaction of the governing body: Proof
of ownership; proof of loss or destruction; a surety bond in twice the face amount of
the public security, including any unmatured coupons appertaining thereto; and
payment of the cost of preparing and issuing the new public security.
(7) Any officer authorized to execute any public security, after filing with the
secretary of state his manual signature certified by him under oath, may execute or
cause to be executed, with a facsimile signature in lieu of his manual signature, any
public security authorized in this article; except that such a filing is not a condition
of execution with a facsimile signature of any interest coupon, and except that at
least one signature required or permitted to be placed on each such public security,
excluding any interest coupon, shall be manually subscribed. The facsimile
signature of an officer shall have the same legal effect as his manual signature.
(8) The clerk or secretary of the issuer may cause the seal of the issuer to be
printed, engraved, stamped, or otherwise placed in facsimile on any public security.
The facsimile seal shall have the same legal effect as the impression of the seal.
(9) The ordinance authorizing any public securities or other instrument
appertaining thereto may contain any agreement or provision customarily contained
in instruments securing revenue bonds or like public securities, including without
limiting the generality of the foregoing, covenants designated in section 11-54-113.