§ 32-11-629 — Permissive additional security

Colorado § 32-11-629

• Jurisdiction: Colorado
• Title 32: Special
• Art.: Urban Drainage and Flood Control Act

Text

(1) In addition to the additional
security provided for in section 32-11-628, and not in limitation thereof, the urban
district may further additionally secure the payment of assessment debentures and
assessment bonds pertaining to any improvement district, both as to principal and
interest, as may be provided in accordance with this section.

(2) In consideration of general benefits conferred on the urban district at
large from the acquisition by construction, or otherwise, of local improvements, the
urban district, prior to the issuance of any assessment debentures or assessment
bonds pertaining to any improvement district in this article, may contract by
resolution with the holders thereof that the payment of such securities pertaining
to the improvement district, both as to principal and interest, as the same become
due, is additionally secured by a pledge of moneys in a special fund or special
account created therefor into which the urban district covenants to deposit the
proceeds of general (ad valorem) property taxes to be levied not earlier than the
date of the debentures or bonds of any such series nor later than two years after
the maturity date thereof or last maturity date of any serial bonds of any issue, not
exceeding in any one year in the aggregate for all improvement districts the
limitation pertaining to assessment bonds in section 32-11-217 (1)(d). After the
issuance of any such securities, the urban district shall levy such general (ad
valorem) taxes pursuant to such contract; but any such levy shall be diminished to
the extent other funds of the urban district available therefor are appropriated to
and deposited in such fund or account.

(3) Prior to the redemption of all such securities, including both principal and
interest, the proceeds of such taxes and any moneys deposited in such fund or
account in lieu of such taxes shall be disbursed from the fund or account only for
the payment of the principal of and interest on the securities, and any prior
redemption premium pertaining thereto. After the securities have been redeemed in
full, any moneys remaining in the fund or account and pertaining only to the
improvement district shall be deposited in the surplus and deficiency fund.

(4) Securities of the urban district pertaining to any improvement district
payable from assessments, which payment shall be additionally secured as
provided in section 32-11-628, or in both that section and this section, as the board
may determine, shall not be subject to the debt limitation nor exhaust the debt
incurring power of the urban district, nor shall such securities be required to be
authorized at any election. Such securities shall not be held to constitute a
prohibited lending of credit or donation nor to contravene any constitutional or
statutory limitation or restriction.

Legislative History

Source: L. 69: p. 796, � 142. C.R.S. 1963: � 89-21-142.