(1)The
proceeds derived from the issuance of any refunding bonds under the provisions of
this part 6 shall either be immediately applied to the payment or redemption and
retirement of the bonds to be refunded and the cost and expense incident to such
procedures or shall immediately be placed in escrow to be applied to the payment
of said bonds upon their presentation therefor and the costs and expenses incident
to such proceedings and for no other purpose whatsoever until the bonds being
refunded have been paid in full and discharged and all accrued interest thereon has
also been paid in full, upon which occurrences the escrow shall terminate, and any
moneys remaining therein shall be returned to the district's bond redemption fund.
(2)Any such escrowed proceeds, pending such u
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(1) The
proceeds derived from the issuance of any refunding bonds under the provisions of
this part 6 shall either be immediately applied to the payment or redemption and
retirement of the bonds to be refunded and the cost and expense incident to such
procedures or shall immediately be placed in escrow to be applied to the payment
of said bonds upon their presentation therefor and the costs and expenses incident
to such proceedings and for no other purpose whatsoever until the bonds being
refunded have been paid in full and discharged and all accrued interest thereon has
also been paid in full, upon which occurrences the escrow shall terminate, and any
moneys remaining therein shall be returned to the district's bond redemption fund.
(2) Any such escrowed proceeds, pending such use, may be invested or, if
necessary, reinvested only in securities meeting the investment requirements
established in part 6 of article 75 of title 24, C.R.S., maturing at such times as to
ensure the prompt payment of the bonds refunded under the provisions of this part
6 and the interest accruing thereon.
(3) Such escrowed proceeds and investments, together with any interest to
be derived from such investments, shall be in an amount which at all times is
sufficient to pay the bonds refunded as they become due at their respective
maturities or as they are called for redemption and payment on prior redemption
dates, as to principal, interest, any prior redemption premium due, and any charges
of the escrow agent payable therefrom. The computations made in determining
such sufficiency shall be verified by a certified public accountant.
(4) For the purpose of implementing the provisions of this part 6, the
committee of any district has the power to enter into escrow agreements and to
establish escrow accounts with any commercial bank having full trust powers
located within the state of Colorado and a member of the federal deposit insurance
corporation under protective covenants and agreements whereby such accounts
shall be fully secured by securities meeting the investment requirements
established in part 6 of article 75 of title 24, C.R.S., or shall be invested in such
securities only, in such amounts as will be sufficient and maturing at such times so
as to ensure the prompt payment of the bonds refunded and the interest accruing
thereon, under the provisions of this part 6.
(5) In no event shall the aggregate amount of bonded indebtedness of any
district exceed the maximum allowable amount as determined pursuant to section
23-71-504; except that in determining and computing such aggregate amount of
bonded indebtedness of any district, bonds which have been refunded, as provided
in this part 6, either by immediate payment or redemption and retirement or by the
placement of the proceeds of refunding bonds in escrow, shall not be deemed
outstanding indebtedness from and after the date on which sufficient moneys are
placed with the paying agent of such outstanding bonds for the purpose of
immediately paying or redeeming and retiring such bonds or from and after the
date on which the proceeds of said refunding bonds are placed in escrow.
(6) The issuance of refunding bonds by any district for the purposes of and in
the manner authorized by this part 6, or by the provisions of any other law, shall
never be interpreted or taken to be the creation of an indebtedness such that the
same would require the approval at an election held in accordance with part 5 of
this article, and no such approval shall be required for the issuance of such
refunding bonds except as is specifically required by the law under which said
refunding bonds are sought to be issued or have been issued.
(7) No bonds may be refunded under the provisions of this part 6 unless the
holders thereof voluntarily surrender said bonds for immediate exchange or
immediate payment or unless said bonds either mature or are callable for
redemption prior to their maturity under their terms within ten years after the date
of issuance of the refunding bonds, and provisions shall be made for paying or
redeeming and discharging all of the bonds refunded within said period of time.
(8) No bonds shall be refunded under the provisions of this part 6 within a
period of one year following the actual issuance and delivery thereof to their initial
purchasers unless the proceeds of said refunding bonds are immediately applied to
the payment or redemption and retirement of the bonds being refunded.
(9) No bonds shall be issued under the provisions of this part 6 for the
purpose of refunding any refunding bonds unless the original bonds refunded by
said refunding bonds have previously been paid or redeemed and retired.