§ 32-4-524 — Payment of securities

(1) All securities issued by the district
shall be authorized by resolution.

(2) The district may pledge its full faith and credit for the payment of any
securities authorized in this part 5, the interest thereon, any prior redemption
premiums, and any charges appertaining thereto. Such securities may constitute
the direct and general or special obligations of the district. Their payment may be
secured by a specific pledge of tax proceeds and other revenues of the district, in
this part 5 sometimes referred to as revenues of the district, as the board may
determine.

(3) The board, in connection with such additionally secured securities, in the
resolution authorizing their issuance or other instrument appertaining thereto may
pledge all or a portion of such revenues, subject to any prior pledges, as additional
security for such payment of said securities, and at its option may deposit such
revenues in a fund created to pay the securities or created to secure additionally
their payment.

(4) Any such revenues pledged directly or as additional security for the
payment of securities of any one issue or series which revenues are not exclusively
pledged therefor, may subsequently be pledged directly or as additional security
for the payment of the securities of one or more issues or series subsequently
authorized.

(5) All securities of the same issue or series shall, subject to the prior and
superior rights of outstanding securities, claims, and other obligations, have a prior,
paramount, and superior lien on the revenues pledged for the payment of the
securities over and ahead of any lien there against subsequently incurred of any
other securities; but, the resolution authorizing, or other instrument appertaining to,
the issuance of any securities may provide for the subsequent authorization of
bonds or other securities, the lien for the payment of which on such revenues is on a
parity with the lien thereon of the subject securities upon such conditions and
subject to such limitations as said resolution or other instrument may provide.

(6) All securities of the same issue or series shall be equally and ratably
secured without priority by reason of number, date of maturity, date of securities, of
sale, of execution, or of delivery, by a lien on said revenues in accordance with the
provisions of this part 5 and the resolution authorizing, or other instrument
appertaining to, said securities, except to the extent such resolution or other
instrument shall otherwise specifically provide.

(7) Each such security issued under this part 5 shall recite in substance that
said security and the interest thereon are payable solely from the revenues or other
moneys pledged to the payment thereof. Securities specifically pledging the full
faith and credit of the district for their payment shall so state.

(8) The payment of securities shall not be secured by an encumbrance,
mortgage, or other pledge of property of the district, except for revenues, income,
tax proceeds, and other moneys pledged for the payment of securities. No property
of the district, subject to said exception, shall be liable to be forfeited or taken in
payment of the securities.

Legislative History

Source: L. 62: p. 206, � 14. C.R.S. 1963: � 89-15-23.