§ 32-11.5-402 — Bonds

Colorado § 32-11.5-402

• Jurisdiction: Colorado
• Title 32: Special
• Art.: Fountain Creek Watershed, Flood Control,

Text

(1) Subject to the election requirements specified in
section 32-11.5-205 (2)(c)(II), the district may, from time to time, issue bonds for any
of its corporate purposes. The bonds shall be issued pursuant to a resolution of the
board or a trust indenture, shall not be secured by an encumbrance, mortgage, or
other pledge of real or personal property of the district, and shall be payable from
any district revenues unless the bond resolution or trust indenture specifically
limits the source of district revenues from which the bonds are payable.

(2) Bonds may be executed and delivered by the district at such times, may
be in such form and denominations and include such terms and maturities, may be
subject to optional or mandatory redemption prior to maturity with or without a
premium, may be in fully registered form or bearer form registrable as to principal
or interest or both, may bear such conversion privileges, may be payable in such
installments and at such times not exceeding forty years from the date thereof,
may be payable at such place or places whether within or without the state, may
bear interest at such rate or rates per annum, which may be fixed or vary according
to index, procedure, or formula or as determined by the district or its agents,
without regard to any interest rate limitation appearing in any other law of the
state, may be subject to purchase at the option of the holder or the district, may be
evidenced in such manner, may be executed by such officers of the district,
including the use of one or more facsimile signatures so long as at least one manual
signature appears on the bonds, which may be either of an officer of the district or
of an agent authenticating the same, may be in the form of coupon bonds that have
attached interest coupons bearing a manual or facsimile signature of an officer of
the district, and may contain such provisions not inconsistent with this article, all as
provided in the resolution of the district under which the bonds are authorized to be
issued or as provided in a trust indenture between the district and any bank or trust
company having full trust powers.

(3) Bonds may be sold at public or private sale at such price or prices, in such
manner, and at such times as determined by the board, and the board may pay all
fees, expenses, and commissions that it deems necessary or advantageous in
connection with the sale of the bonds. The power to fix the date of sale of the
bonds, to receive bids or proposals, to award and sell bonds, to fix interest rates,
and to take all other action necessary to sell and deliver the bonds may be
delegated to an officer or agent of the district. Any outstanding bonds may be
refunded by the district pursuant to article 56 of title 11, C.R.S. All bonds and any
interest coupons applicable thereto are declared to be negotiable instruments.

(4) The resolution or a trust indenture authorizing the issuance of the bonds
may pledge all or a portion of the special fund, may contain such provisions for
protecting and enforcing the rights and remedies of holders of any of the bonds as
the district deems appropriate, may set forth the rights and remedies of the holders
of any of the bonds, and may contain provisions that the district deems appropriate
for the security of the holders of the bonds, including, but not limited to, provisions
for letters of credit, insurance, standby credit agreements, or other forms of credit
ensuring timely payment of the bonds, including the redemption price or the
purchase price.

(5) Any lawful pledge of moneys or other property made by the district or by
any person or governmental unit with which the district contracts shall be valid and
binding from the time the pledge is made. The special fund or other property so
pledged shall immediately be subject to the lien of the pledge without any physical
delivery or further act, and the lien of the pledge shall be valid and binding against
all parties having claims of any kind in tort, contract, or otherwise against the
pledging party regardless of whether the claiming party has notice of the lien. The
instrument by which the pledge is created need not be recorded or filed.

(6) Neither the members of the board, employees of the district, nor any
person executing the bonds shall be liable personally on the bonds or subject to
any personal liability or accountability by reason of the issuance thereof.

(7) The district may purchase its bonds out of any available moneys and may
hold, pledge, cancel, or resell such bonds subject to and in accordance with
agreements with the holders thereof.

(8) The state hereby pledges and agrees with the holders of any bonds and
with those parties who enter into contracts with the district pursuant to this article
that the state will not limit, alter, restrict, or impair the rights vested in the district
or the rights or obligations of any person with which it contracts to fulfill the terms
of any agreements made pursuant to this article. The state further agrees that it
will not in any way impair the rights or remedies of the holders of bonds until the
bonds have been paid or until adequate provision for payment has been made. The
district may include this provision and undertaking for the state in its bonds.

(9) All banks, trust companies, savings and loan associations, insurance
companies, executors, administrators, guardians, trustees, and other fiduciaries
may legally invest any moneys within their control in any bonds issued under this
article. Public entities, as defined in section 24-75-601 (1), C.R.S., may invest public
funds in bonds only if the bonds satisfy the investment requirements established in
part 6 of article 75 of title 24, C.R.S.

(10) The income or other revenues of the district, all properties at any time
owned by the district, bonds, and the transfer of and the income from bonds shall
be exempt from all taxation and assessments in the state. In the resolution or
indenture authorizing bonds, the district may waive the exemption from federal
income taxation for interest on the bonds. Bonds shall be exempt from the
provisions of article 51 of title 11, C.R.S.

Legislative History

Source: L. 2009: Entire article added, (SB 09-141), ch. 194, p. 862, � 1, effective April 30.