§ 23-15-110 — Bonds

Colorado § 23-15-110

• Jurisdiction: Colorado
• Title 23: Postsecondary Education
• Art.: Colorado Educational and Cultural

Text

(1) The authority may issue from time to time its bonds in
such principal amounts as the authority shall determine for the purpose of
financing all or a part of the cost of any facilities authorized by this article or for the
refinancing of outstanding obligations. In anticipation of the sale of such bonds, the
authority may issue bond anticipation notes and may renew the same from time to
time. Such notes shall be paid from any revenues of the authority or other moneys
available therefor and not otherwise pledged or from the proceeds of the sale of
the bonds of the authority in anticipation of which they were issued. The notes shall
be issued in the same manner as bonds. Such notes and the resolution or
resolutions authorizing them may contain any provisions, conditions, or limitations
which a bond resolution of the authority may contain.

(2) The bonds may be issued as serial bonds, as term bonds, or as a
combination of both types. All bonds issued by the authority shall be payable solely
out of the revenues and receipts derived from the leasing, mortgaging, or sale by
the authority of the facilities concerned or of any part thereof as designated in the
resolutions of the authority under which the bonds are authorized to be issued or as
designated in a trust indenture authorized by the authority, which trust indenture
shall name a bank or trust company in Colorado, or outside of Colorado if it is
determined by the authority to be in the best interests of the financing, such
determination to be conclusive, as trustee, or out of other moneys available
therefor and not otherwise pledged. Such bonds may be executed and delivered by
the authority at such times, may be in such form and denominations and include
such terms and maturities, may be in fully registered form or in bearer form
registerable either as to principal or interest or both, may bear such conversion
privileges, may be payable in such installments and at such time or times not
exceeding forty years from the date thereof, may be payable at such place or
places whether within or without the state of Colorado, may bear interest at such
rate or rates per annum as shall be determined by the authority or as may be
determined from time to time by a designated agent of the authority in accordance
with specified standards and procedures and without regard to any interest rate
limitation appearing in any other law, may be evidenced in such manner, may be
executed by such officers of the authority, including the use of one or more
facsimile signatures so long as at least one manual signature appears on the bonds,
which manual signature may be either that of an officer of the authority or that of
an officer of the trustee authenticating the same, may be in such form of coupon
bonds having attached thereto interest coupons bearing the facsimile signature of
an authorized officer of the authority, and may contain such provisions not
inconsistent with this article as shall be provided in the resolutions of the authority
under which the bonds are authorized to be issued or as is provided in a trust
indenture authorized by the authority. Notwithstanding anything in this subsection
(2) to the contrary, in the case of short-term notes or other obligations maturing not
later than one year from the date of issuance thereof, the board may authorize the
executive director, associate executive director, or any officer of the board to fix
principal amounts, maturity dates, interest rates, and purchase prices of any
particular issue of such short-term notes or obligations, subject to such limitations
as to maximum term, maximum principal amount outstanding, and maximum net
effective interest rates as the board shall prescribe by resolution, and such
authorization shall remain effective for the period of time designated in the initial
resolution regardless of whether the composition of the board changes in the
interim unless sooner rescinded by the board.

(3) If deemed advisable by the authority, there may be retained in the
resolutions or the trust indenture under which any bonds of the authority are
authorized to be issued an option to redeem all or any part thereof as may be
specified in such resolutions or in such trust indenture, at such price or prices, after
such notice or notices, and on such terms and conditions as may be set forth in such
resolutions or in such trust indenture and as may be briefly recited on the face of
the bonds; but nothing in this article shall be construed to confer on the authority
the right or option to redeem any bonds except as may be provided in the
resolutions or in such trust indenture under which they are issued.

(4) The bonds or notes of the authority may be sold at public or private sale
for such price or prices, in such manner, and at such times as may be determined by
the authority, and the authority may pay all expenses, premiums, and commissions
which it may deem necessary or advantageous in connection with the issuance
thereof. The power to fix the date of sale of bonds and notes, to receive bids or
proposals, to award and sell bonds and notes, and to take all other necessary action
to sell and deliver bonds and notes may be delegated to the executive director of
the authority by resolution of the authority. Pending preparation of the definitive
bonds, the authority may issue interim receipts or certificates to be exchanged for
such definitive bonds.

(5) (a) Issuance by the authority of one or more series of bonds for one or
more purposes shall not preclude it from issuing other bonds in connection with the
same facilities or any other facilities or for any other purpose under this article, but
the resolutions or trust indenture under which any subsequent bonds may be issued
shall recognize the terms and provisions of any prior pledge or mortgage made for
any prior issue of bonds and the terms upon which such additional bonds may be
issued and secured. Any outstanding bonds of the authority may, at any time and
from time to time, be refunded or advance refunded by the authority by the
issuance of its bonds for such purpose and in such principal amount as may be
determined by the authority, which may include interest accrued or to accrue
thereon with or without giving effect to investment income thereon and other
expenses necessary to be paid in connection therewith. If deemed advisable by the
authority, such bonds may be refunded or advance refunded for the additional
purpose of paying all or any part of the cost of constructing and acquiring
additions, improvements, extensions, or enlargements of a facility or any portion
thereof.

(b) Any such refunding may be effected whether the bonds to be refunded
have then matured or will mature thereafter either by sale of the refunding bonds
and the application of the proceeds thereof for the payment of the bonds to be
refunded thereby or by the exchange of the refunding bonds for the bonds to be
refunded thereby with the consent of the holders of the bonds to be so refunded,
regardless of whether or not the bonds to be refunded were issued in connection
with the same facilities or separate facilities or for any other purpose under this
article and regardless of whether or not the bonds proposed to be refunded are
payable on the same date or different dates or are due serially or otherwise. The
proceeds of any such bonds issued for the purpose of refunding outstanding bonds
may be applied, in the discretion of the authority, to the purchase or retirement at
maturity or redemption of such outstanding bonds either on their earliest or any
subsequent redemption date or upon the purchase or at the maturity thereof and,
pending such application, may be placed in escrow to be applied to such purchase
or retirement at maturity or redemption on such date as may be determined by the
authority. Any such escrowed proceeds, pending such use, may be invested or
deposited in securities or depositories meeting the requirements established in part
6 of article 75 of title 24, C.R.S., maturing at such time or times as are appropriate
to assure the prompt payment as to principal, interest, and redemption premium, if
any, of the outstanding bonds to be so refunded. The interest, income, and profit, if
any, earned or realized on any such investment may also be applied, in the
discretion of the authority, to the payment of the outstanding bonds or notes to be
so refunded or to the payment of principal and interest on the refunding bonds or
for any other purpose under this article. After the terms of the escrow have been
fully satisfied and carried out, any balance of such proceeds and interest, income,
and profits, if any, earned or realized on the investments thereof may be returned to
the authority for use by it in any lawful manner. The portion of the proceeds of any
such bonds issued for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or enlargements
of a facility may be invested or deposited in securities or depositories meeting the
requirements established in part 6 of article 75 of title 24, C.R.S., maturing not later
than the time or times when such proceeds will be needed for the purpose of paying
all or any part of such cost. The interest, income, and profits, if any, earned or
realized on such investment may be applied to the payment of all or any part of
such cost or may be used by the authority in any lawful manner. All such bonds
shall be subject to the provisions of this article in the same manner and to the same
extent as other bonds issued pursuant to this article.

Legislative History

Source: L. 81: Entire article added, p. 1103, � 1, effective July 1. L. 84: (2) amended, p. 636, � 2, effective April 5. L. 89: (5)(b) amended, p. 1109, � 14, effective July 1.