§ 29-4-115 — Mortgage when financed by government

(1) In connection with
any housing project financed in whole or in part by a government, every city also
has power to mortgage all or any part of such housing project, the construction of
which was financed with the proceeds of its bonds or with such proceeds
supplemented by the proceeds of a grant from the federal government, and by such
mortgage:

(a) To vest in a government the right, in the event of default as defined in
such mortgage, to foreclose the mortgage through judicial proceedings or through
the exercise of a power of sale without judicial proceedings as long as the
government is the holder of any of the bonds secured by such mortgage;

(b) To vest in a trustee the right, in the event of default as defined in such
mortgage, to foreclose such mortgage through judicial proceedings or through the
exercise of a power of sale without judicial proceedings, but only with the consent
of the government which aided in financing the project;

(c) To vest in an obligee other than a government the right, but only with the
consent of the government which aided in financing the project involved, to
foreclose such mortgage by judicial proceedings;

(d) To vest in an obligee, including a government, the right in foreclosing any
mortgage as aforesaid to foreclose such mortgage as to all or such part of the
property covered by such mortgage as such obligee, in its absolute discretion,
elects; such institution, prosecution, and conclusion of any such proceedings or the
sale of such parts of the mortgaged property shall not affect in any manner or to
any extent the lien of the mortgage on the parts of the mortgaged property not
included in such proceedings or not sold.

Legislative History

Source: L. 35: p. 517, � 16. CSA: C. 82, � 19. CRS 53: � 69-2-15. C.R.S. 1963: � 69-2-15.