§ 32-4-535 — Issuance of notes and pledge of bonds as collateral security

(1)
(a) Notwithstanding any limitation or other provision in this part 5, whenever a
proposal to issue bonds has been approved and the district authorized to issue
bonds in the manner required by this part 5 for any purpose authorized in this part
5, the district is authorized to borrow money without any other election in
anticipation of taxes, the receipt of the proceeds of said bonds or any other
revenues of the district, or any combination thereof, and to issue notes to evidence
the amount so borrowed. Notes may mature at such times not exceeding a period of
time equal to the estimated time needed to effect the purposes for which the bonds
are so authorized to be issued, plus two years, as the board may determine. Except
as otherwise provided in this section, notes shall be issued as provided in this part 5
for securities in sections 32-4-524 to 32-4-532 and section 32-4-534. Taxes, other
revenues of the district, including, without limiting the generality of the foregoing,
proceeds of bonds to be thereafter issued or reissued, or bonds issued for the
purpose of securing the payment of notes, may be pledged for the purpose of
securing the payment of the notes.

(b) Any bonds pledged as collateral security for the payment of any notes
shall mature at such times as the board may determine but in no event exceeding
forty years from the date of either any of such bonds or any of such notes,
whichever date is earlier. Any such bonds pledged as collateral security shall not be
issued in an aggregate principal amount exceeding the aggregate principal amount
of the note secured by a pledge of such bonds, nor shall they bear interest at any
time which, with any interest accruing at the same time on the note so secured,
exceeds the maximum net effective interest rate approved at the election held to
authorize the issuance of said bonds under this part 5.

(2) No note issued pursuant to the provisions of this section shall be
extended or funded except by the issuance or reissuance of a bond in compliance
with subsection (3) of this section.

(3) For the purpose of funding any note, any bond pledged as collateral
security to secure the payment of such note may be reissued without an election,
and any bonds not previously issued but authorized to be issued at an election for a
purpose the same as or encompassing the purpose for which the notes were issued
may be issued for such a funding. Notwithstanding any other provision of law, any
bond to be issued for the purpose of funding any note by a district that qualifies as
an enterprise in accordance with section 20 (2)(d) of article X of the state
constitution may be issued without an election. Any such bonds shall mature at
such times as the board may determine but in no event exceeding forty years from
the date of either any of the notes so funded or any of the bonds so pledged as
collateral security, whichever date is the earlier. Bonds for funding, including but
not necessarily limited to any such reissued bonds, and bonds for any other purpose
authorized in this part 5, may be issued separately or issued in combination in one
series or more. Except as otherwise provided in this section, any such funding bonds
shall be issued as is provided for refunding bonds in subsections (1), (2), (4), (5), (7),
and (8) of section 32-4-533 and provided for securities in sections 32-4-524 to 32-4-532 and section 32-4-534.

Legislative History

Source: L. 62: p. 218, � 14. C.R.S. 1963: � 89-15-34. L. 70: p. 288, � 92. L. 2002: (3) amended, p. 46, � 2, effective August 7.