§ 23-21-518 — Refunding bonds

(1) The board of directors may provide for the
issuance of refunding obligations of the authority for the purpose of refunding any
obligations then outstanding which have been issued under the provisions of this
part 5, including the payment of any redemption premium thereon and any interest
accrued or to accrue to the date of redemption of such obligations, and for any
corporate purpose of the authority.

(2) Refunding obligations issued as provided in subsection (1) of this section
may be sold or exchanged for outstanding obligations issued under this part 5, and,
if sold, the proceeds thereof may be applied, in addition to any other authorized
purposes, to the purchase, redemption, or payment of such outstanding obligations.
Pending the application of the proceeds of any such refunding obligations, with any
other available funds, to the payment of the principal, the accrued interest, and any
redemption premium on the obligations being refunded and, if so provided or
permitted in the resolution authorizing the issuance of such refunding obligations
or in the trust agreement securing the same, to the payment of any interest on such
refunding obligations and any expenses in connection with such refunding, such
proceeds may be invested in securities meeting the investment requirements
established in part 6 of article 75 of title 24, C.R.S., which shall mature or which
shall be subject to redemption by the holders thereof, at the option of such holders,
not later than the respective dates when the proceeds, together with the interest
accruing thereon, will be required for the purposes intended.

Legislative History

Source: L. 91: Entire part added, p. 575, � 2, effective June 1.