§ 31-21-205 — Ordinance for bond issue - bonds

Colorado § 31-21-205

• Jurisdiction: Colorado
• Title 31: Government
• Art.: Bonds

Text

(1) If the governing body
determines to issue refunding bonds without an election by meeting the
requirements set forth in sections 31-21-202 to 31-21-204 or if, upon canvassing the
vote cast at any election held under the provisions of this part 2, it is determined by
the governing body that a majority of the votes cast upon the question submitted
are in favor of refunding, the governing body shall make such determination a part
of the official records of the municipality and shall immediately thereafter adopt
and make a law of the municipality, an ordinance providing for the issuance of said
refunding bonds in accordance with the provisions of this part 2.

(2) Such ordinance shall fix the date of said refunding bonds, shall designate
the denominations thereof, shall designate the maximum net effective interest rate,
the rate of interest of individual bonds, the maturity dates, and the place or
alternate places of payment, within or without the state of Colorado, of both
principal and interest, and shall prescribe the form of said refunding bonds.

(3) Such refunding bonds shall be negotiable in form, shall recite the title of
the act under which they are issued, and shall be executed in the name of the
municipality and signed by the mayor, countersigned by the treasurer, with the seal
of the municipality affixed thereto, and attested by the clerk. The interest accruing
on such refunding bonds shall be evidenced by interest coupons thereto attached
bearing the engraved facsimile signature of the treasurer of the municipality. When
so executed, such coupons shall be the binding obligations of the municipality,
according to their import.

(4) In the adoption of said ordinance providing for the issuance of said
refunding bonds, the governing body shall make the principal of the debt payable in
annual or semiannual installments commencing not later than five years after the
date of such bonds and maturing during a period not exceeding thirty-five years
from the date thereof. The amounts of such maturities shall be fixed by the
governing body. The right to redeem all or any part of said issue of bonds prior to
the respective maturities thereof and the order of any such redemption may be
reserved in said ordinance, and, if so reserved, shall be set forth on the face of said
bonds.

(5) Outstanding bonds which are secured by a pledge of specific special
funds or revenues of the municipality in addition to the general ad valorem tax
revenues of said municipality may be refunded under the provisions of this part 2,
and substantial compliance with the provisions of this part 2 is deemed and taken to
be sufficient to legally authorize such refunding and the issuance of refunding
bonds for such purpose without further actions being taken by the municipality.
Such a pledge of specific special funds or revenues need not be made to
additionally secure the refunding bonds so issued, but such funds or revenues may
be so pledged if it is deemed advisable by the governing body of the municipality.

Legislative History

Source: L. 75: Entire title R&RE, p. 1137, � 1, effective July 1.