(1) Any securities in this part 5 authorized to be
issued shall bear such date, shall be in such denomination, shall mature at such
time but in no event exceeding forty years from their date, shall bear interest at a
rate such that the net effective interest rate of the issue of securities does not
exceed the maximum net effective interest rate authorized, which interest may be
evidenced by one or two sets of coupons, payable annually or semiannually; except
that the first coupon appertaining to any security may represent interest for any
period, not in excess of one year, as may be prescribed by resolution or other
instrument; and said securities and any coupons shall be payable in such medium of
payment at any banking institution or such other place within or without the state,
including but not limited to the office of the treasurer of any county in which the
district is located wholly or in part, as determined by the board, and said securities
at the option of the board may be in one or more series, may be made subject to
prior redemption in advance of maturity in such order or by lot or otherwise at such
time without or with the payment of such premium, not exceeding six percent of the
principal amount of each security so redeemed, as determined by the board.
(2) Any resolution authorizing the issuance of securities or other instrument
appertaining thereto may capitalize interest on any securities during any period of
construction estimated by the board and one year thereafter and any other cost of
any project, by providing for the payment of the amount capitalized from the
proceeds of the securities.
(3) Securities may be issued with privileges for conversion or registration, or
both, for payment as to principal or interest, or both; and where interest accruing on
the securities is not represented by interest coupons, the securities may provide for
the endorsing of payments of interest thereof; and the securities generally shall be
issued in such manner, in such form, either coupon or registered, with such recitals,
terms, covenants and conditions, and with such other details, as may be provided by
the board in the resolution authorizing the securities, or other instrument
appertaining thereto, except as otherwise provided in this part 5.
(4) Any resolution authorizing the issuance of securities or any other
instrument appertaining thereto may provide for their reissuance in other
denominations in negotiable or nonnegotiable form and otherwise in such manner
and form as the board may determine.
(5) Subject to the payment provisions specifically provided in this part 5, said
debentures, warrants, bonds, any interest coupons thereto attached, and such
interim receipts or temporary certificates or temporary bonds, and notes shall be
fully negotiable within the meaning of and for all the purposes of article 8 of title 4,
C.R.S., except as the board may otherwise provide; and each holder of such
security, or of any coupon appertaining thereto, by accepting such security or
coupon shall be conclusively deemed to have agreed that such security or coupon,
except as otherwise provided, is and shall be fully negotiable within the meaning
and for all purposes of said article.
(6) Notwithstanding any other provision of law, the board in any proceedings
authorizing securities under this part 5:
(a) May provide for the initial issuance of one or more securities, in this
subsection (6) called bond, aggregating the amount of the entire issue;
(b) May make such provision for installment payments of the principal
amount of any such bond as it may consider desirable;
(c) May provide for the making of any such bond payable to bearer or
otherwise, registrable as to principal or as to both principal and interest, and where
interest accruing thereon is not represented by interest coupons, for the endorsing
of payments of interest on such bonds;
(d) May further make provision in any such proceedings for the manner and
circumstances in which any such bond may in the future, at the request of the
holder thereof, be converted into bonds of smaller denominations, which bonds of
smaller denominations may in turn be either coupon bonds or bonds registrable as
to principal, or principal and interest, or both.
(7) If lost or completely destroyed, any security may be reissued in the form
and tenor of the lost or destroyed security upon the owner furnishing, to the
satisfaction of the board: Proof of ownership; proof of loss or destruction; a surety
bond in twice the face amount of the security and any coupons; and payment of the
cost of preparing and issuing the new security.
(8) Any security shall be executed in the name of and on behalf of the
district and signed by the chairman of the board, with the seal of the district affixed
thereto and attested by the secretary of the district.
(9) Except for any bonds which are registrable for payment of interest,
interest coupons payable to bearer and appertaining to the bonds shall be issued
and shall bear the original or facsimile signature of the chairman of the board.
(10) Any one of said officers, after filing with the secretary of state his
manual signature certified by him under oath, may execute or cause to be executed
with a facsimile signature in lieu of his manual signature any security authorized in
this part 5, but such a filing is not a condition of execution with a facsimile
signature of any interest coupon, and provided that at least one signature required
or permitted to be placed on each such security, excluding any interest coupon,
shall be manually subscribed. An officer's facsimile signature has the same legal
effect as his manual signature.
(11) The secretary of the district may cause the seal of the district to be
printed, engraved, stamped, or otherwise placed in facsimile on any security. The
facsimile seal has the same legal effect as the impression of the seal.
(12) The securities and any coupons bearing the signatures of the officers in
office at the time of the signing thereof shall be binding obligations of the district,
notwithstanding that before the delivery thereof and payment therefor, any or all of
the persons whose signatures appear thereon shall have ceased to fill their
respective offices.
(13) Any officer in this part 5 authorized or permitted to sign any security or
interest coupon, at the time of its execution and of the execution of a signature
certificate, may adopt as his own facsimile signature the facsimile signature of his
predecessor in office in the event that such facsimile signature appears upon the
security or coupons appertaining thereto, or upon both the security and such
coupons.
(14) The securities may be repurchased by the district out of any funds
available for such purpose from the project to which they pertain at a price of not
more than the principal amount thereof and accrued interest, plus the amount of
the premium, if any, which might on the next redemption date of such securities be
paid to the holders thereof if such securities should be called for redemption on
such date pursuant to their terms, and all securities so repurchased shall be
canceled.
(15) The resolution authorizing the securities or other instrument
appertaining thereto may contain any agreement or provision customarily contained
in instruments securing securities, including, without limiting the generality of the
foregoing, covenants designated in section 32-4-529.