(1)There is hereby
established the Colorado education savings program which shall be administered
by the authority and which shall include, but need not be limited to, components
concerning bonds and certificates, education, financial incentives, and alternative
payment plans. In furtherance of the Colorado education savings program and in
addition to any powers, duties, and responsibilities enumerated in this article, the
authority may:
(a)Designate the bonds or certificates of participation of the authority as
Colorado education savings bonds or certificates;
(b)Designate the bonds or certificates of participation of issuers other than
the authority as Colorado education savings bonds or certificates if the issuer of
such instruments applies for such designation and if such
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(1) There is hereby
established the Colorado education savings program which shall be administered
by the authority and which shall include, but need not be limited to, components
concerning bonds and certificates, education, financial incentives, and alternative
payment plans. In furtherance of the Colorado education savings program and in
addition to any powers, duties, and responsibilities enumerated in this article, the
authority may:
(a) Designate the bonds or certificates of participation of the authority as
Colorado education savings bonds or certificates;
(b) Designate the bonds or certificates of participation of issuers other than
the authority as Colorado education savings bonds or certificates if the issuer of
such instruments applies for such designation and if such instruments satisfy the
criteria established in subsection (2) of this section.
(2) Bonds or certificates of participation may be designated as Colorado
education savings bonds or certificates pursuant to subsection (1) of this section if
such instruments satisfy the following criteria:
(a) The bonds or certificates are structured and are to be marketed
statewide by the underwriters in such a manner as to attract a broad range of
investors in the retail Colorado bond market, including, but not limited to, parents,
grandparents, or others who are interested in planning for the college education of
their children;
(b) The interest on the bonds or certificates is exempt from Colorado income
taxation;
(c) The bonds or certificates are issued by a state or local governmental
entity, agency, institution, subdivision, district, or financing authority on its own
behalf or on behalf of a nonprofit organization which is exempt from federal
taxation pursuant to section 501 (c)(3) of the Internal Revenue Code of 1986, as
amended, or on behalf of a nonprofit corporation which is organized principally for
the support and benefit of such state or local governmental entity, agency,
institution, subdivision, district, financing authority, or nonprofit corporation;
(d) The bonds or certificates, at the time such instruments are designated as
Colorado education savings bonds or certificates, are rated in one of the two
highest rating categories of such instruments by one or more nationally recognized
organizations which regularly rate such obligations;
(e) The bonds or certificates are either zero-coupon, deep discount, or
comparable instruments and the maturation dates of such instruments are
structured to the extent possible both to accommodate the financing needs of the
issuer or the entity on whose behalf the instruments are being issued and to fulfill
the needs of individuals planning on using the proceeds of such instruments for
education purposes.
(3) The authority shall collaborate with the Colorado commission on higher
education on the development of educational materials designed to inform parents
and others concerning the importance of accumulating the financial resources
necessary to pay for a child's college education and the options available to
accomplish that accumulation of resources, including the option of investing in
Colorado education savings bonds or certificates.
(4) The authority shall evaluate the feasibility of:
(a) Payment of financial incentives to holders of Colorado education savings
bonds or certificates if, at maturity, the proceeds of such bonds or certificates are
applied to expenses incurred for education in the state of Colorado;
(b) Staggered or periodic forms of payment for Colorado education savings
bonds or certificates, including, but not limited to, payroll deduction plans;
(c) Matching employer-employee purchase plans for Colorado education
savings bonds or certificates.
(5) No bond, certificate, or other financial instrument sold, traded, conveyed,
or otherwise transferred in the state shall bear the designation, logo, trade name, or
trademark of a Colorado education savings bond or certificate, nor shall any such
bond or financial instrument be called, described, marketed, or otherwise be made
to appear to a reasonable person to be a Colorado education savings bond or
certificate unless such bond or financial instrument has been so designated
pursuant to this section.