§ 11-56-112 — Special obligation refunding bonds

Colorado § 11-56-112

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Public Securities Refunding Act

Text

(1) In addition to and in
combination with the refunding bonds authorized by this article, the public body
may concurrently issue special obligation refunding bonds, for the purpose of
providing additional funds with which to accomplish the refunding of outstanding
general obligations or outstanding revenue obligations. Such special obligation
refunding bonds shall be payable solely from amounts pledged under the escrow or
trust agreement derived from certain specified interest or principal, or both interest
and principal, payments on the investments in said escrow or trust account.

(2) The total principal amount of special obligation refunding bonds shall not
exceed the sum of the following items reduced by the total principal amount of
refunding bonds, other than special obligation refunding bonds, to be issued as a
part of such refunding transaction:

(a) The total outstanding principal amount of the obligations being refunded;

(b) The prior redemption premium, if any, payable on that portion of the
obligations being refunded which are to be called for redemption prior to maturity,
as set forth in the ordinance or resolution authorizing the refunding bonds;

(c) The total accrued and unaccrued interest payable on the obligations
refunded to stated maturity dates or to the dates at which all or specified portions
of the refunded obligations are to be called for redemption prior to maturity, as set
forth in the ordinance or resolution authorizing the refunding bonds, less the
amount of any such accrued interest deposited into the escrow account by the
issuer; and

(d) All costs incurred in the authorization, sale, issuance, and delivery of the
refunding bonds and the special obligation refunding bonds.

(3) The public body shall have no authority or power, at any time or in any
manner, to pledge its credit, or its taxing power or any other funds, moneys, income,
or revenues of such public body other than as specified in this section, to the
payment of the principal of or interest on the special obligation refunding bonds
issued pursuant to this section, nor shall such special obligation refunding bonds be
deemed to be a debt or indebtedness of the public body or the state of Colorado,
and such condition shall be set forth on the face of the bonds; except that such
public body may pledge any other taxing power, funds, moneys, income, or
revenues of such public body as additional security for the special obligation
refunding bonds.

(4) The general provisions of this article relating to refunding obligations
shall equally apply to special obligation refunding bonds, except as otherwise
provided in this article.

Legislative History

Source: L. 77: Entire article added, p. 591, � 1, effective July 1.