§ 23-31-110 — Pledge of income from facilities or equipment

Colorado § 23-31-110

• Jurisdiction: Colorado
• Title 23: Postsecondary Education
• Art.: Colorado State University

Text

(1) The board of
governors of the Colorado state university system, designated in this section as the
board, is authorized to enter into a contract for the advancement of moneys for
the acquisition of facilities or equipment, or both, for the Colorado state university
auditorium-gymnasium, and in connection with or as a part of such contract to
pledge the net income, or any part of such net income, to be derived from such
facilities or equipment, or both, so acquired, and to pledge special student fees
assessed for the purpose of financing such facilities or equipment, or both, as
security for the repayment of the moneys advanced therefor, together with interest
thereon. For the same purpose, the board is also authorized to pledge the net
income derived from any similar facility or equipment, or portion thereof, which was
not acquired with moneys appropriated to Colorado state university, if such net
income derived from such similar facility or equipment, or portion thereof, is
unpledged or, if pledged, is currently in excess of the amount required to amortize
the advancements and interest thereon for which such net income has been
obligated.

(2) The board shall not pledge the general income of Colorado state
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) Any advancement of moneys may be evidenced by revenue bonds or
warrants to be executed by and on behalf of Colorado state university and
containing such terms and provisions, including provisions for redemption prior to
maturity and a maximum net effective interest rate, as may be determined by the
board. Such revenue bonds or warrants shall bear interest at a rate such that the
net effective interest rate of the issue of bonds does not exceed the maximum net
effective interest rate fixed, which interest shall be payable semiannually or
annually. Such revenue bonds or warrants may be sold at less than par, but they
may not be sold at a price such that the net effective interest rate of the issue of
bonds or warrants exceeds the maximum net effective interest rate fixed. Any such
revenue bonds or warrants may be refunded if in the judgment of the board such
refunding is to the best interests of the university.

(4) If the net income derived from such facilities or equipment so acquired
under the provisions of this section exceeds the amount required for the
amortization of any advancement made therefor, together with interest thereon, the
board may apply such surplus to the redemption of such securities prior to maturity
of such securities according to redemption provisions thereof, or such surplus net
income may be used by the board for the purposes of altering or adding to any
existing equipment or facilities acquired pursuant to the provisions of this section.

(5) All obligations and the income therefrom shall be exempt from taxation,
except inheritance, estate, and transfer taxes.

Legislative History

Source: L. 2007: Entire article amended with relocations, p. 526, � 2, effective August 3.