§ 32-11-566 — Conditions for refunding

(1) No such bonds may be refunded
under this article unless they have been outstanding for at least one year from the
date or respective dates of their delivery, and 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 securities
within such period of time.

(2) No maturity of any bond refunded may be extended over fifteen years, or
beyond one year next following the date of the last outstanding maturity,
whichever limitation is later. The rate of interest on such refunding bonds shall be
determined by the board.

(3) 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. Principal may
also then be increased to that extent. In no event, however, in the case of any bonds
constituting a debt, shall the principal of the bonds be increased to any amount in
excess of the debt limitation in section 32-11-534.

(4) The principal amount of the refunding bonds may also be less than or the
same as the principal amount of the bonds being refunded so long as provision is
duly and sufficiently made for their payment.

Legislative History

Source: L. 69: p. 783, � 108. C.R.S. 1963: � 89-21-108. L. 70: p. 302, � 128.