§ 31-25-810 — Bond provisions

Colorado § 31-25-810

• Jurisdiction: Colorado
• Title 31: Government
• Art.: Public Improvements

Text

(1) Bonds issued pursuant to this part 8 shall
bear interest at a rate such that the net effective interest rate of the issue of bonds
does not exceed the maximum net effective interest rate authorized, payable
semiannually or annually, and evidenced by one or two sets of coupons, if any,
executed with the facsimile or manually executed signature of any official of the
municipality; except that the first coupon appertaining to any bond may evidence
interest not in excess of one year. The ordinance authorizing the issuance of such
bonds shall specify the maximum net effective interest rate. Such bonds may be
issued as term or serial bonds, in one or more series, may bear such date, may
mature at such time not exceeding twenty years' duration, may be in such
denomination or denominations, may be payable in such medium of payment at
such place or places within or without the state (including but not limited to the
office of any county treasurer in which the municipality is located wholly or in part),
may carry such registration privileges, may be subject to such terms of prior
redemption in advance of maturity in such order or by lot or otherwise at such time
with or without a premium, may be executed in such manner, may bear such
privileges for reissuance in the same or other denomination, may be so reissued,
without modification of maturities and interest rates, and may be in such form,
either bearer coupon or registered, with such recitals, terms, covenants, conditions,
and other details as may be provided by the governing body, subject to the
provisions of this part 8.

(2) (a) The governing body may provide for preferential security for any
bonds, both principal and interest, to be issued pursuant to this part 8 to the extent
deemed feasible and desirable by such governing body over any bonds that may be
issued thereafter.

(b) Said bonds may be sold at, above, or below the principal amounts thereof,
but they may not be sold at a price such that the net effective interest rate of the
issue of bonds exceeds the maximum net effective interest rate authorized.

(c) Said bonds may be sold at public or private sale as determined by the
governing body to be in the best interest of the issuer.

(3) Bonds may be issued with privileges for conversion or registration, or
both, for payment as to principal or interest, or both; and, where interest accruing
on the bonds is not represented by interest coupons, the bonds may provide for the
endorsing of payments of interest thereon.

(4) Subject to the payment provisions of this part 8, said bonds, any interest
coupons attached thereto, and any temporary bonds shall be fully negotiable within
the meaning of and for all the purposes of article 8 of title 4, C.R.S., except as the
governing body may otherwise provide; and each holder of each such security, by
accepting such security, shall be conclusively deemed to have agreed that such
security, except as otherwise provided, is and shall be fully negotiable within the
meaning and for all purposes of article 8 of title 4, C.R.S.

(5) Notwithstanding any other provision of law, the governing body in any
proceedings authorizing bonds pursuant to this part 8:

(a) May provide for the initial issuance of one or more bonds, referred to in
this subsection (5) as bond, aggregating the amount of the entire issue;

(b) May make such provision for installment payments of the principal
amount of any such bond as it may consider desirable;

(c) May provide for the making of any such bond, payable to bearer or
otherwise, registrable as to principal or as to both principal and interest and, where
interest accruing thereon is not represented by interest coupons, for the endorsing
of payments of interest on such bonds;

(d) May further make provision in any such proceedings for the manner and
circumstances in and under which any such bond may in the future, at the request
of the holder thereof, be converted into bonds of smaller denominations, which
bonds of smaller denominations may in turn be either coupon bonds or bonds
registrable as to principal, or principal and interest, or both.

(6) If lost or completely destroyed, any security authorized by this part 8
may be reissued in the form and tenor of the lost or destroyed security upon the
owner furnishing, to the satisfaction of the governing body, proof of ownership;
proof of loss or destruction; a surety bond in twice the face amount of the security,
including any unmatured coupons appertaining thereto; and payment of the cost of
preparing and issuing the new security.

(7) Any officer authorized to execute any bond, after filing with the secretary
of state his manual signature certified by him under oath, may execute or cause to
be executed, with a facsimile signature in lieu of his manual signature, any bond
authorized in this part 8, if such a filing is not a condition of execution with a
facsimile signature of any interest coupon, and if at least one signature required or
permitted to be placed on each such bond, excluding any interest coupon, is
manually subscribed. An officer's facsimile signature shall have the same legal
effect as his manual signature.

Legislative History

Source: L. 76: Entire part added, p. 706, � 1, effective April 26. L. 77: (1) amended, p. 1476, � 7, effective June 19.