§ 32-1-1304 — Use of proceeds of refunding bonds

The proceeds of general
obligation refunding bonds shall either be immediately applied to the retirement of
the indebtedness being refunded or be placed in escrow in any state or national
bank within this state which is a member of the federal deposit insurance
corporation and which has trust powers to be applied to the payment of the
indebtedness being refunded upon presentation therefor; but, to the extent any
incidental expenses have been capitalized, such refunding bond proceeds may be
used to defray such expenses, and any accrued interest on the refunding bonds
may be applied to the payment of the interest thereon and the principal thereof, or
both interest and principal, or may be deposited in a reserve therefor, as the board
may determine. Any such escrow shall not necessarily be limited to proceeds of
refunding bonds but may include other moneys available for its purpose. Any
proceeds in escrow, 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, together with any interest 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 payable therefrom to pay the indebtedness being refunded as the
same becomes due at their respective maturities or due at any designated prior
redemption dates in connection with which the board shall exercise a prior
redemption option. Any purchaser of any refunding bond issued under this part 13
shall in no manner be responsible for the application of the proceeds thereof by the
special district or any of its officers, agents, or employees.

Legislative History

Source: L. 81: Entire article R&RE, p. 1610, � 1, effective July 1. L. 89: Entire section amended, p. 1134, � 83, effective July 1.