(1) In addition to
the powers specified in section 32-1-1101, the board of any tunnel district has the
following powers for and on behalf of such district:
(a) To fix and from time to time increase or decrease tolls or other charges
for the use of any tunnel and to pledge the same for the payment of principal of and
interest and any prior redemption premium on any securities or other obligations of
the tunnel district issued in connection with the acquisition, construction,
improvement, equipping, operation, maintenance, or financing of a tunnel located in
whole or in part within such tunnel district;
(b) To issue without an election, pursuant to an authorizing resolution and
subject to the provisions and contractual limitations and resolutions authorizing
outstanding bonds and other securities of the tunnel district, securities to defray, in
whole or in part, the costs of one or more tunnel projects in the manner provided in
and subject to the limitations imposed by subsection (2) of this section;
(c) To invest or deposit moneys belonging to or collected by and on behalf of
the tunnel district in accordance with the requirements established in part 6 of
article 75 of title 24, C.R.S. In addition, a tunnel district may direct a corporate
trustee which holds funds of the tunnel district to invest or deposit such funds in
investments or deposits other than those specified by said part 6 if the board
determines by resolution that such investments or deposits meet the standard
established in section 15-1-304, C.R.S., if the income is at least comparable to
income available on investments or deposits specified by said part 6, and if such
investments will assist the tunnel district in the acquisition, construction,
improvement, equipping, operation, maintenance, or financing of a tunnel.
(2) (a) (I) The tunnel project for which securities are issued pursuant to
paragraph (b) of subsection (1) of this section may be the acquisition, construction,
improvement, equipping, operation, or maintenance, or any combination thereof, of
any land, tunnel, building, structure, equipment, or other property necessary or
desirable for use in connection with the operations of a tunnel district.
(II) The cost of the project may include, in the board's discretion, all
incidental costs pertaining to the project and the financing thereof, including,
without limitation, contingencies and the capitalization, with proceeds of securities,
of operation and maintenance expenses appertaining to the tunnel project and
interest on the securities for any period not exceeding the period estimated by the
board to effect the acquisition, construction, improvement, or equipping of the
tunnel project plus one year, of any discount on the securities, and of any reserves
for payment of principal of and interest on the securities.
(b) The board may issue interim securities, which may be designated bonds,
notes, or warrants, evidencing any emergency loans, any acquisition,
construction, improvement, equipping, operation, or maintenance loans, and any
other temporary loans not exceeding three years in supplementation of long-term
financing, such interim securities to be funded with the proceeds of long-term
securities, net pledged revenues, or further interim securities, or any combination
thereof, as the board may determine.
(c) (I) Except to the extent inconsistent with the provisions of this section,
any securities issued pursuant to this section for any tunnel project shall be issued
in the form and manner and with the effect provided in sections 11-54-111 and 11-54-112, C.R.S., for public securities issued under the Refunding Revenue Securities
Law, article 54 of title 11, C.R.S.
(II) The authorizing resolution, trust indenture, or other instrument
appertaining thereto may contain any of the covenants, and the board may do such
acts and things, as are permitted in section 11-54-113, C.R.S.
(III) Revenue obligations issued to refund revenue bonds of a tunnel district
and to refund securities issued under this section may be issued under the
Refunding Revenue Securities Law, article 54 of title 11, C.R.S.
(d) The securities shall be payable and collectible, as to principal, interest,
and any prior redemption premium, solely out of net pledged revenues, and the
holder thereof may not look to any general or other fund for such payment of such
securities except the net revenues pledged therefor. The securities shall not
constitute an indebtedness or a debt within the meaning of any constitutional or
statutory provision or limitation if any such provision or limitation appertains
thereto. The securities shall not be considered or held to be general obligations of
the tunnel district but shall constitute its special obligations, and the full faith and
credit of the tunnel district shall not be pledged for their payment. Such payment
shall not be secured by an encumbrance, a mortgage, or any other pledge of
property of the tunnel district, except for its pledged revenues. No property of the
tunnel district, subject to said exception, shall be liable to be forfeited or taken in
payment of securities.
(e) A resolution providing for the issuance of bonds or other securities under
this section or an indenture or other proceedings appertaining thereto may provide
that the securities contain a recital that they are issued pursuant to this section,
which recital shall be conclusive evidence of their validity and the regularity of their
issuance.
(f) The determination of the board that the limitations imposed under this
subsection (2) upon the issuance of securities under this section have been met
shall be conclusive in the absence of fraud or arbitrary and gross abuse of
discretion, regardless of whether the authorizing resolution or the securities
thereby authorized contain a recital as authorized by paragraph (e) of this
subsection (2).
(g) Bonds and other securities issued under the provisions of this section,
their transfer, and the income therefrom shall forever remain free and exempt from
taxation by this state or any political subdivision thereof.
(h) (I) Except as otherwise expressly provided in this section, this section,
without reference to other statutes of this state, constitutes full authority for the
exercise of the incidental powers granted in this section concerning the borrowing
of money to defray, in whole or in part, the cost of any tunnel project and the
issuance of securities to evidence such loans.
(II) The powers conferred by this section are in addition and supplemental to
and not in substitution for, and the limitations imposed by this section shall not
affect, the powers conferred by any other law.
(III) Nothing in this section shall be construed as preventing the exercise of
any power granted to the board or to a tunnel district acting by and through its
board or any officer, agent, or employee thereof by any other law.
(3) The state hereby pledges and agrees with the holders of any bonds or
other obligations issued by any tunnel district that the state will not limit, alter,
restrict, or impair the rights vested in the tunnel district to fulfill the terms of any
agreements made with the holders of bonds or other securities authorized and
issued pursuant to the provisions of this section. The state further agrees that it will
not in any way impair the rights or remedies of the holders of any bonds or
securities of the tunnel district until such bonds or securities have been paid or until
adequate provision for payment thereof has been made. The tunnel district may
include this provision and undertaking of the state in such bonds or other securities.