(1)Any bonds issued for any refunding
purpose authorized in section 31-35-402 (1)(j) may either be delivered in exchange
for the outstanding bonds authorized to be refunded or may be sold as provided for
in section 31-35-404.
(2)No bonds may be refunded under this part 4 unless they either mature or
are callable for prior redemption under their terms within fifteen years from the
date of issuance of the refunding bonds or unless the holders thereof voluntarily
surrender them for exchange or payment. The final maturity of the bonds refunded
may not be extended over fifteen years. The rates of interest on such refunding
bonds shall be determined by the governing body. The principal amount of the
refunding bonds may exceed the principal amount of the refunded bonds by such
amount
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(1) Any bonds issued for any refunding
purpose authorized in section 31-35-402 (1)(j) may either be delivered in exchange
for the outstanding bonds authorized to be refunded or may be sold as provided for
in section 31-35-404.
(2) No bonds may be refunded under this part 4 unless they either mature or
are callable for prior redemption under their terms within fifteen years from the
date of issuance of the refunding bonds or unless the holders thereof voluntarily
surrender them for exchange or payment. The final maturity of the bonds refunded
may not be extended over fifteen years. The rates of interest on such refunding
bonds shall be determined by the governing body. The principal amount of the
refunding bonds may exceed the principal amount of the refunded bonds by such
amount or amounts as are useful to effect the refunding if the aggregate principal
and interest costs of the refunding bonds for the period ending on the scheduled
final maturity date of the bonds refunded, without regard to any redemptions that
may be made prior to such scheduled maturity date, do not exceed such unaccrued
costs of the bonds refunded for the same time period, excluding from the
computation of the aggregate principal and interest cost of the refunding bonds
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 and to pay any interest on
the refunding bonds.
(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 that the pledge of any such revenues for the payment of the
outstanding bonds issued by the municipality 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 31-35-402 (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 ordinance or resolution, rates, fees, tolls, service charges, and
other aspects of the bonds; except that the governing body may include, in
determining the amount of the refunding bonds, an amount sufficient to pay
interest, which is estimated will accrue on the refunding bonds for a period not
exceeding five years from the date of the refunding bonds, and the governing body
may pay such interest on the refunding bonds from the proceeds of the refunding
bonds.
(7) The determination of the governing body 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.