(1)The board of regents
shall establish policies and procedures to determine and monitor the ability of the
university of Colorado:
(a)To pay principal, interest, and any other costs due in connection with any
revenue bonds issued pursuant to section 23-5-102;
(b)To establish and maintain the necessary reserves required to pay the
principal, interest, and other costs due in connection with any revenue bonds issued
pursuant to section 23-5-102;
(c)To pay costs of operation and maintenance of the auxiliary facility or
group of auxiliary facilities on behalf of which revenue bonds are issued pursuant to
section 23-5-102; and
(d)To satisfy all covenants and agreements set forth in any resolution,
indenture, or other document authorizing or executed in connection with the
issu
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(1) The board of regents
shall establish policies and procedures to determine and monitor the ability of the
university of Colorado:
(a) To pay principal, interest, and any other costs due in connection with any
revenue bonds issued pursuant to section 23-5-102;
(b) To establish and maintain the necessary reserves required to pay the
principal, interest, and other costs due in connection with any revenue bonds issued
pursuant to section 23-5-102;
(c) To pay costs of operation and maintenance of the auxiliary facility or
group of auxiliary facilities on behalf of which revenue bonds are issued pursuant to
section 23-5-102; and
(d) To satisfy all covenants and agreements set forth in any resolution,
indenture, or other document authorizing or executed in connection with the
issuance of revenue bonds pursuant to section 23-5-102.
(2) The policies and procedures adopted pursuant to subsection (1) of this
section shall include, but need not be limited to, the following requirements:
(a) That, upon issuance of revenue bonds pursuant to section 23-5-102, the
university shall identify the primary revenue sources for payment of principal and
interest on the bonds from among those revenues and other moneys pledged for
payment of principal and interest on the revenue bonds;
(b) That, upon issuance of revenue bonds pursuant to section 23-5-102, the
university shall perform a financial analysis, based upon assumptions approved by
the board of regents and the state auditor, that demonstrates that revenues
expected to be annually available from the sources identified under paragraph (a)
of this subsection (2) will be sufficient to pay at least one hundred twenty-five
percent of the annual principal and interest on the revenue bonds;
(c) That the university shall annually review the revenue sources identified
under paragraph (a) of this subsection (2) to determine if the financial analysis
required in paragraph (b) of this subsection (2) shows sufficient revenues for
payment of principal and interest on the revenue bonds and, if the revenues are not
sufficient, take such action as the board of regents and the state auditor shall
require to assure that adequate revenues are available to pay the principal and
interest on the revenue bonds;
(d) That the maximum annual debt service on all revenue bonds issued
pursuant to section 23-5-102, except as provided for in sections 23-5-101.8 and 23-5-103, outstanding at any time for the university shall not exceed ten percent of the
university's unrestricted current fund expenditures plus mandatory transfers;
(e) That the university shall establish and maintain such debt service
reserves and such reserves for repair and replacement of any auxiliary facility or
group of auxiliary facilities on behalf of which revenue bonds are issued pursuant to
section 23-5-102 and as may be required by the terms of the resolution, indenture,
or other document authorizing or executed in connection with the issuance of the
revenue bonds and subject to review and approval by the state auditor; and
(f) That the university shall annually report to the state auditor regarding
compliance with the requirements specified in this subsection (2) and any additional
requirements that may be imposed by the board of regents.
(3) The policies and procedures required under this section shall be
established no later than January 1, 1995, and shall apply to any revenue bonds
issued pursuant to section 23-5-102 on or after such date.