§ 32-4-523 — Form of borrowing

Colorado § 32-4-523

• Jurisdiction: Colorado
• Title 32: Special
• Art.: Water and Sanitation Districts

Text

(1) Upon the conditions and under the
circumstances set forth in this part 5, a district, to carry out the purposes of this
part 5, from time to time may borrow money to defray the cost of any project, or any
part thereof, as the board may determine, and issue the following securities to
evidence such borrowing: Debentures, warrants, bonds, interim receipts, temporary
certificates, temporary bonds, and notes.

(2) A district is authorized to borrow money without an election in
anticipation of taxes or other revenues, or both, and to issue debentures to evidence
the amount so borrowed.

(3) A district is authorized to defray the cost of any services, supplies,
equipment, or other materials furnished to or for the benefit of the district by the
issuance of warrants to evidence the amount due therefor, without an election, in
anticipation of taxes or other revenues, or both.

(4) Debentures and warrants may mature at such time or times not
exceeding five years from the date of their issuance as the board may determine.
They shall not be extended or funded except by the issuance of bonds or notes in
compliance with subsection (5) or (7) of this section.

(5) A district is authorized to borrow money in anticipation of taxes or other
revenues, or both, and to issue bonds to evidence the amount so borrowed. With the
exception of a district that qualifies as an enterprise in accordance with section 20
(2)(d) of article X of the state constitution, no bonded indebtedness shall be created
by a district, without first submitting a proposition of issuing such bonds, and the
maximum net effective interest rate at which such bonds may be issued, to the
electors of the district and being approved, at an election held for that purpose, in
accordance with section 32-4-518. Bonds so authorized may be issued in one series
or more and may mature at such time or times not exceeding forty years from their
issuance as the board may determine.

(6) A district is authorized to issue interim receipts or temporary certificates
or temporary bonds, pending preparation of definitive bonds and exchangeable for
the definitive bonds when prepared, as the board may determine. Each holder of
any such temporary security shall have all the rights and remedies which he would
have as a holder of the definitive bonds.

(7) A district is authorized to borrow money and to issue notes evidencing
construction or short-term loans for the acquisition or improvement and
equipment of a sewage disposal system or any project in supplementation of long-term financing and the issuance of bonds, as provided in section 32-4-535 and
elsewhere in this part 5.

(8) Nothing in this part 5 shall be construed as creating or authorizing the
creation of an indebtedness on the part of any municipality included in the district.

Legislative History

Source: L. 62: p. 205, � 14. C.R.S. 1963: � 89-15-22. L. 70: p. 287, � 88. L. 81: (4) amended, p. 1639, � 4, effective May 8. L. 2002: (5) amended, p. 46, � 1, effective August 7.