§ 32-4-533 — Refunding bonds

Colorado § 32-4-533

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

Text

(1) Any bonds issued under this part 5 may be
refunded, without an election, pursuant to a resolution adopted by the board in the
manner provided in this part 5 for the issuance of other securities, subject to any
contractual limitations, to refund, pay, or discharge all or any part of the district's
outstanding bonds, including any interest thereon in arrears or about to become
due, or for the purpose of reducing interest costs or effecting other economies or of
modifying or eliminating restrictive contractual limitations appertaining to the
issuance of additional bonds for any sewage disposal system or project.

(2) Any bonds issued for refunding purposes may either be delivered in
exchange for the outstanding bonds authorized to be refunded or may be sold as
provided in this part 5 for the sale of other bonds.

(3) No bonds may be refunded under this part 5 unless they either mature or
are callable for prior redemption under their terms within ten years from the date of
issuance of the refunding bonds, or unless the holders thereof voluntarily surrender
them for exchange or payment. No maturity of any bonds refunded may be
extended over fifteen years. The rate of interest on such refunding bonds shall be
determined by the board. The principal amount of the refunding bonds may exceed
the principal amount of the refunded bonds if the aggregate principal and interest
costs of the refunding bonds do not exceed such unaccrued costs of the bonds
refunded.

(4) The proceeds of refunding bonds shall either be immediately applied to
the retirement of the bonds to be refunded or be placed in escrow to be applied to
the payment of the bonds upon their presentation therefor. Any escrowed proceeds,
pending such use, may be invested or reinvested in securities meeting the
investment requirements established in part 6 of article 75 of title 24, C.R.S. Such
escrowed proceeds and investments, together with any interest to be derived from
any such investment, shall be in an amount at all times sufficient to pay the bonds
refunded as they become due at their respective maturities or due at prior
redemption dates as to principal, interest, any prior redemption premium due, and
any charges of the escrow agent payable therefrom.

(5) Refunding revenue bonds may be made payable from any revenues
derived from the operation of any sewage disposal system or project, or any other
source, notwithstanding that the pledge of such revenues for the payment of the
outstanding bonds issued by the district which are to be refunded is thereby
modified.

(6) Bonds for refunding and bonds for any other purpose authorized in this
part 5 may be issued separately or issued in combination in one series or more.

(7) Except as in this section specifically provided or necessarily implied, the
relevant provisions in this part 5 pertaining to bonds shall be equally applicable in
the authorization and issuance of refunding bonds, including their terms and
security, the bond resolution, trust indenture, taxes, and service charges, and other
aspects of the bonds.

(8) The determination of the board that the limitations under this part 5
imposed upon the issuance of refunding bonds have been met shall be conclusive in
the absence of fraud or arbitrary and gross abuse of discretion.

Legislative History

Source: L. 62: p. 216, � 14. C.R.S. 1963: � 89-15-32. L. 70: p. 288, � 91. L. 89: (4) amended, p. 1118, � 38, effective July 1.