(1) For
the purpose of raising funds from time to time for erecting, purchasing, otherwise
acquiring, reconstructing, improving, adding to, extending, bettering, equipping,
and furnishing, or any combination thereof, a student memorial center consisting of
one or more buildings on the campus of the university of Colorado, the board of
regents thereof, designated as the regents of the university of Colorado (in this
section sometimes designated as the board), is authorized to enter into contracts
with persons or corporations advancing money for such purposes, under which
contracts the board is authorized to pledge the net income from the student
memorial center, its facilities, and special student fees assessed for the purpose of
financing the student memorial center or any part of such net income to the
repayment of any sums so advanced and interest thereon.
(2) The board shall not pledge the general income of the university or create
any mortgage upon property belonging to such institution or obligate the state of
Colorado for the purpose of repaying or receiving any funds raised or advanced
under the provisions of this section.
(3) For the purpose of evidencing any such loan, the board may issue, in its
name and on its behalf, notes, debentures, bonds, or other evidences of
indebtedness, in this section sometimes designated as obligations.
(4) Any obligations may be refunded by the board, subject to provisions
concerning their payment and any other contractual limitations in any proceedings
authorizing the issuance of the obligations or otherwise appertaining thereto, by
the issuance of obligations to refund, pay, and discharge all or any part of
outstanding obligations for the purpose of avoiding or terminating any default,
reducing interest costs or effecting other economies, or modifying or eliminating
restrictive contractual limitations concerning the outstanding obligations of the
student memorial center, or any combination thereof.
(5) Any obligations issued for refunding purposes either may be delivered in
exchange for the outstanding obligations being refunded or may be publicly or
privately sold.
(6) No obligations may be refunded under this section unless the holders
thereof voluntarily surrender them for exchange or payment or unless they either
mature or are callable for prior redemption under their terms within ten years from
the date of issuance of the refunding obligations. Provision shall be made for
paying the obligations within said period of time. The principal amount of the
refunding obligations may exceed the principal amount of the refunded obligations
if the aggregate principal and interest costs of the refunding obligations do not
exceed such unaccrued costs of the obligations refunded. The principal amount of
the refunding obligations may also be less than or the same as the principal amount
of the obligations being refunded so long as provision is duly and sufficiently made
for the payment of the refunded obligations.
(7) The proceeds of refunding obligations shall either be immediately applied
to the retirement of the obligations to be refunded or 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 obligations being refunded upon
their presentation therefor. To the extent any incidental expenses have been
capitalized, such refunding obligation proceeds may be used to defray such
expenses. Any accrued interest and any premium appertaining to a sale of
refunding obligations may be applied to the payment of the interest thereon, the
principal thereof, or both interest and principal or deposited in a reserve therefor as
the board may determine. Any such escrow shall not necessarily be limited to
proceeds of refunding obligations but may include other moneys available for its
purpose. Any proceeds in escrow, 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 proceeds and investments in escrow, 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, and any
charges of the escrow agent payable therefrom to pay the obligations being
refunded as they become due at their respective maturities or due at any
designated prior redemption date in connection with which the board exercises a
prior redemption option. Any purchaser of any obligation issued under this section
shall in no manner be responsible for the application of the proceeds thereof by the
board or any of its officers, agents, or employees.
(8) Refunding obligations may be made payable from any net revenues
derived from the student memorial center, or any portion thereof, notwithstanding
that the pledge of such revenues for the payment of the outstanding obligations
being refunded is thereby modified.
(9) Obligations for refunding and obligations for any other purpose
authorized may be issued separately or in combination in one series or more.
(10) The board shall establish a maximum net effective interest rate for
obligations issued under this section. Such obligations shall bear interest at a rate
or rates such that the net effective interest rate of the issue of obligations does not
exceed the maximum net effective interest rate established. 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 or
officials of the board; except that the first coupon or coupons appertaining to any
obligation may evidence interest not in excess of one year, and such obligations
may be in one series or more, may bear such date or dates, may mature at such time
or times not exceeding forty years from their respective dates, may be designated
or redesignated, may be in such denomination or denominations, may be payable in
such medium of payment, at such place or places within or without the state, 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 or times 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 resolution of the board.
(11) The obligations shall never be sold at a price such that the net effective
interest rate of the issue of obligations exceeds the maximum net effective interest
rate established.
(12) Obligations may be issued with privileges for conversion or registration,
or both, for payment as to principal or interest, or both. If interest accruing on the
obligations is not represented by interest coupons, the obligations may provide for
the endorsing of payments of interest thereon. The obligations generally shall be
issued in such manner, in such form, either coupon or registered, with such recitals,
terms, and provisions for subordination of subsequently issued obligations and such
covenants and conditions, and with such other details as may be provided by the
board, except as otherwise provided in this section.
(13) All obligations and the income therefrom shall be exempt from taxation,
except inheritance, estate, and transfer taxes.
(14) All moneys received from the issuance of any obligations authorized in
this section shall be used solely for the purpose for which issued and the cost of
any project designated by the board and authorized in this section, including
interest or discount on obligations, or both; cost of issuance of obligations;
architectural, engineering, and inspection costs and legal expenses; costs of
financial, professional, and other estimates and advice; contingencies; any
administrative, operating, and other expenses of the board appertaining to a
student memorial center prior to and during such acquisition or improvement and
equipment, and additionally during a period of not exceeding one year after the
completion thereof, as may be estimated and determined by the board in any
resolution authorizing the issuance of any obligations or other instrument
appertaining thereto, and all such other expenses as may be necessary or incident
to the financing, acquisition, improvement, equipment, and completion of said
center or part thereof, the placing of the same in operation, and also any provision
or reserves for working capital, operation, maintenance, or replacement expenses,
or for payment or security of principal of or interest on any obligations during or
after such acquisition or improvement and equipment as the board may determine,
and also reimbursements to the board, any bank, other corporation, or any other
person of any moneys previously expended for the purposes of said center; except
that any accrued interest and any premium appertaining to a sale of obligations
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 board
may determine.
(15) The powers conferred by this section shall be in addition and
supplemental to and not in substitution for, and the limitations imposed by this
section shall not affect, the powers conferred by any other law. Obligations may be
issued under this section without regard to the provisions of any other law. Insofar
as the provisions of this section are inconsistent with the provisions of any other
law, the provisions of this section shall be controlling.