§ 30-20-410 — Refunding bonds

Colorado § 30-20-410

• Jurisdiction: Colorado
• Title 30: Government
• Art.: Public Improvements

Text

(1) Any bonds issued for any refunding
purpose authorized in section 30-20-402 (1)(j) may either be delivered in exchange
for the outstanding bonds authorized to be refunded or may be sold as provided in
this part 4.

(2) No bonds may be refunded under this part 4 unless they either mature or
are callable for prior redemption under their terms within ten years from the date of
issuance of the refunding bonds or unless the holders thereof voluntarily surrender
them for exchange or payment. No maturity of any bond refunded may be extended
over fifteen years. The rate of interest on such refunding bonds shall be determined
by the board. The principal amount of the refunding bonds may exceed the principal
amount of the refunded bonds if the aggregate principal and interest costs of the
refunding bonds do not exceed such unaccrued costs of the bonds refunded,
excluding from the computation of such limitation the amount of the principal of
any refunding bonds issued to pay any interest in arrears or about to become due
on the bonds refunded.

(3) The proceeds of refunding bonds shall either be immediately applied to
the retirement of the bonds to be refunded or be placed in escrow to be applied to
the payment of the bonds upon their presentation therefor. Any escrowed proceeds,
pending such use, may be invested or reinvested in securities meeting the
investment requirements established in part 6 of article 75 of title 24, C.R.S. Such
escrowed proceeds and investments, together with any interest to be derived from
any such investment, shall be in an amount at all times sufficient to pay the bonds
refunded as they become due at their respective maturities or due at prior
redemption dates as to principal, interest, any prior redemption premium due, and
any charges of the escrow agent payable therefrom.

(4) Refunding revenue bonds may be made payable from any revenues
derived from the operation of any water facilities or sewerage facilities or of both
water facilities and sewerage facilities comprising a joint water and sewer system,
notwithstanding the pledge of any such revenues for the payment of the
outstanding bonds issued by the county which are to be refunded is thereby
modified.

(5) Bonds for refunding and bonds for any other purpose authorized in this
part 4 may be issued separately or issued in combination in one series or more.

(6) Except as expressly provided or necessarily implied in this section and in
section 30-20-402 (1)(j), the relevant provisions in this part 4 pertaining to revenue
bonds not issued for refunding purposes shall be equally applicable in the
authorization and issuance of refunding revenue bonds, including their terms and
security, the bond resolution, rates, fees, tolls, service charges, and other aspects
of the bonds.

(7) The determination of the board, that the limitations under this part 4
imposed upon the issuance of refunding bonds have been met, shall be conclusive
in the absence of fraud or arbitrary and gross abuse of discretion.

Legislative History

Source: L. 71: p. 362, � 1. C.R.S. 1963: � 36-29-10. L. 89: (3) amended, p. 1114, � 23, effective July 1.