§ 24-75-907 — Form and terms of notes

Colorado § 24-75-907

• Jurisdiction: Colorado
• Title 24: Government
• Art.: State Funds

Text

(1) Notes shall be issued in a form
consistent with the provisions of this part 9, describing the fund and the revenue
from which such notes are payable; shall mature not later than three days before
the last day of the fiscal year in which the same were issued; shall bear interest, if
any, at a rate or rates determined by the state treasurer to be for the best
advantage of the state; and may be redeemable, payable, or subject to purchase
prior to maturity at such time and upon the payment of such premium or premiums,
if any, as shall be determined by the state treasurer to be for the best advantage of
the state. Book entry issuance is a form consistent with this part 9. The rate or rates
of interest borne by the notes may be fixed, adjustable, or variable or any
combination thereof. If any rate or rates are adjustable or variable, the standard,
index, method, or formula pursuant to which the same are to be determined from
time to time shall be set forth in the state treasurer's resolution authorizing the
issuance of the notes. Such standard, index, method, or formula may include a
delegation of authority to an agent acting for and on behalf of the state to
determine a rate or rates within parameters, including a maximum interest rate,
prescribed by the state treasurer in the resolution authorizing the issuance of the
notes.

(2) In connection with the issuance of any notes, the state treasurer may
direct the controller to create such restricted accounts within any fund as may be
necessary or convenient for the segregation of note proceeds and investment
income therefrom, revenue and investment income therefrom, or other sums, and
the state treasurer may pledge any such accounts to and create liens thereon in
favor of the owners of the notes; except that the aggregate amount of all such
restricted accounts other than those created for note proceeds and investment
income therefrom shall not exceed the principal and interest due at maturity on
such notes. In connection with such issuance, the state treasurer may also make
such customary covenants on behalf of the state as may be necessary to secure the
notes.

(3) Any pledge made by the state treasurer shall be valid and binding from
the time the pledge is made. The revenues and moneys so pledged and thereafter
received shall immediately be subject to the lien of such pledge without any
physical delivery or further act, and the lien of such pledge shall be valid and
binding against all parties having claims of any kind in tort, by contract, or
otherwise against such pledging parties, irrespective of whether such claiming
parties have notice of such lien. The resolution by which a pledge is created need
not be recorded. Said resolution shall constitute a commitment voucher for
purposes of section 24-30-202. The execution by the state treasurer and the
controller of said resolution shall constitute the controller's approval of the
commitment voucher and the treasurer's authorization of the expenditure of
moneys from the state treasury to pay costs of issuance and the principal of and
interest on notes at maturity.

Legislative History

Source: L. 86: Entire part R&RE, p. 969, � 1, effective July 1. L. 89: Entire section amended, p. 1137, � 3, effective March 21.