§ 23-5-103 — Pledge of income

(1) The governing board of any one or more
state educational institutions, including but not limited to the state colleges under
the control and operation of their respective boards of trustees, that enters into a
contract for the advancement of money is authorized, in connection with or as a
part of the contract, to pledge the net income derived or to be derived from land or
facilities constructed, acquired, and equipped as security for the repayment of the
money advanced in the contract, together with interest, and for the establishment
and maintenance of reserves in connection with the contract. For the same purpose,
any such governing board is also authorized, subject to the limitations specified in
section 23-5-119.5 (5), to pledge the net income derived or to be derived from other
facilities that are included in a designated enterprise or, if not included, other
facilities that are not acquired and not to be acquired with money appropriated to
the institution by the state of Colorado, and to pledge the net income, fees, and
revenues derived from such sources, if unpledged, or, if pledged, the net income,
fees, and revenues currently in excess of the amount required to meet principal,
interest, and reserve requirements in connection with outstanding obligations to
which the net income, fees, and revenues have been pledged. A governing board of
an institution or group of institutions designated as an enterprise pursuant to
section 23-5-101.7 that has entered into a contract for the advancement of money
on behalf of the institution or group of institutions may pledge up to one hundred
percent of tuition revenues of the enterprise, except for general fund money
appropriated by the general assembly, and all or a portion of a facility construction
fee that may be imposed as security for the repayment of the money advanced
pursuant to the contract. The pledge of tuition revenues or the imposition of a
facility construction fee includes a process for student input consistent with the
institutional plan for student fees adopted by the governing board of the applicable
institution pursuant to section 23-5-119.5.

(2) Any advancement of moneys may be evidenced by interim warrants, if
necessary, and bonds to be executed by and on behalf of the educational institution
receiving the advancement and containing such terms and provisions, including
provisions for redemption prior to maturity, as may be determined by the governing
board of such institution. Such warrants or bonds may, at the discretion of the
governing board, be registerable as to principal or interest, or both, and shall never
be sold at less than ninety-five percent of the principal amount thereof and accrued
interest thereon to the date of delivery nor at a price which will result in a net
effective interest rate which exceeds that specified in the contract for the
advancement of moneys. Any of the warrants or bonds of the institution issued
pursuant to this article or any other law may be refunded pursuant to article 54 of
title 11, C.R.S., if in the judgment of the governing board such refunding is to the
best interests of the educational institution. Such refunding obligations may be
made payable from any source which may be legally pledged for the payment of
the obligations being refunded at the time of the issuance of the obligations so
refunded or from any of the sources described in subsection (1) of this section,
notwithstanding the pledge for the payment of the outstanding obligations being
refunded is thereby modified.

(3) If the pledged net income, fees, and revenues exceed the amount
required to meet principal, interest, and reserve requirements in connection with
revenue bonds of the institution to which such income has been pledged and
exceed the amount necessary for the maintenance and operation of the auxiliary
facility plus any amount set aside in a reserve fund for repair and replacement of
the facility, the governing board may retain such surplus and utilize the same in
such manner as in its judgment is for the best interests of the educational
institution; except that, if the governing board uses the surplus moneys on a project
expected to be paid from cash funds or other nonstate moneys, the project shall be
subject to the provisions of section 23-1-106. Use of such surplus shall be reviewed
in advance by representatives of the student government at the institution with
which the auxiliary facility is associated.

(4) Anticipation warrants or bonds issued pursuant to this article may be
used as security for any depository bond or obligation where any kind of bonds or
other securities shall or may by law be deposited as security.

Legislative History

Source: L. 53: p. 554, � 2. CRS 53: � 124-1-7. L. 61: p. 710, � 2. L. 63: p. 867, � 1. C.R.S. 1963: � 124-1-5. L. 67: p. 201, � 2. L. 68: p. 7, � 1. L. 70: p. 345, � 2. L. 78: (1) amended, p. 380, � 1, effective March 24. L. 88: (1) amended, p. 858, � 6, effective July 1. L. 93: (1) and (3) amended, p. 1823, � 3, effective June 6. L. 94: (1) amended, p. 1680, � 6, effective May 31. L. 97: (1) and (3) amended, p. 1406, � 3, effective July 1. L. 2003: (1) amended, p. 789, � 9, effective July 1. L. 2004: (1) amended, p. 722, � 11, effective July 1; (1) amended, p. 1935, � 4, effective July 1. L. 2011: (1) and (3) amended, (HB 11-1301), ch. 297, pp. 1419, 1431, �� 9, 31, effective August 10. L. 2016: (1) amended, (SB 16-121), ch. 56, p. 135, � 1, effective March 31; (3) amended, (HB 16-1459), ch. 317, p. 1281, � 2, effective August 10. L. 2022: (1) amended, (SB 22-121), ch. 76, p. 385, � 1, effective April 7.