§ 31-25-811 — Refunding bonds

Colorado § 31-25-811

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

Text

(1) By ordinance adopted by the governing
body at a regular or special meeting, by vote of a majority of the members of the
governing body, any bonds issued under this part 8 may be refunded by the
municipality without an election, subject to the provisions concerning their payment
and to any other contractual limitations in the proceedings authorizing their
issuance or otherwise relating thereto.

(2) Any bonds issued for refunding purposes may either be delivered in
exchange for the outstanding bonds authorized to be refunded or may be sold as
provided in this part 8 for the sale of other bonds.

(3) No bonds may be refunded under this part 8 unless the holders thereof
voluntarily surrender them for exchange or payment or 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. Provision shall be made for paying the bonds
within said period of time. No maturity of any bonds refunded may be extended over
fifteen years. The rate of interest on such refunding bonds shall be determined by
the authority. 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, except to the extent any interest on the bonds refunded in arrears or
about to become due is capitalized with the proceeds of the refunding bonds. The
principal amount of the refunding bonds may also be less than or the same as the
principal amount of the bonds refunded so long as provision is duly and sufficiently
made for their payment.

(4) The proceeds of refunding bonds shall either be immediately applied to
the retirement of the bonds to be refunded or be placed in escrow or in trust to be
applied to the payment of the bonds refunded upon their presentation therefor. Any
proceeds held in escrow or in trust, 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 proceeds and investments in escrow or in trust,
together with any interest or other gain to be derived from any such investment,
shall be in an amount at all times sufficient as to principal, interest, any prior
redemption premium due, and any charges of the escrow agent or trustee payable
therefrom to pay the bonds refunded as they become due at their respective
maturities or due at designated prior redemption dates upon which the authority
shall be obligated to call the refunded bonds for prior redemption.

(5) The relevant provisions pertaining to bonds generally shall be equally
applicable in the authorization and issuance of refunding bonds, including their
terms and security, the bond resolution, trust indenture, taxes, and revenues, and
other aspects of the bonds.

Legislative History

Source: L. 76: Entire part added, p. 707, � 1, effective April 26. L. 77: (1) amended, p. 1477, � 8, effective June 19. L. 89: (4) amended, p. 1116, � 29, effective July 1.