§ 32-7-127 — Use of proceeds of refunding bonds

The proceeds of refunding
general obligation or revenue bonds shall either be immediately applied to the
retirement of the bonds being refunded or be placed in escrow in any state or
national bank within the state which is a member of the federal deposit insurance
corporation to be applied to the payment of the bonds being refunded upon their
presentation therefor; but, to the extent any incidental expenses have been
capitalized, such refunding bond proceeds may be used to defray such expenses,
and any accrued interest and any premium appertaining to a sale of refunding
bonds may be applied to the payment of the interest thereon and the principal
thereof, or both interest and principal, or may be deposited in a reserve therefor, as
the board may determine. Any such escrow shall not necessarily be limited to
proceeds of refunding bonds but may include other moneys available for the
escrow's purpose. Any moneys in escrow, 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 moneys and investments in escrow, together
with any interest to be derived from any such investment, shall be in an amount at
all times sufficient as to principal, interest, any prior redemption premium due, and
any charges of the escrow agent payable therefrom to pay the bonds being
refunded as they become due at their respective maturities or due at any
designated prior redemption date or dates in connection with which the board shall
exercise a prior redemption option. Any purchaser of any refunding bond issued
under sections 32-7-125 and 32-7-126 and this section shall in no manner be
responsible for the application of the proceeds thereof by the service authority or
any of its officers, agents, or employees.

Legislative History

Source: L. 72: p. 471, � 1. C.R.S. 1963: � 89-25-27. L. 89: Entire section amended, p. 1119, � 39, effective July 1.