§ 32-9-148 — Issuance of interim notes

(1) Whenever a proposal to issue bonds
for any purpose authorized in this article has been approved at an election held in
accordance with this article, the district may borrow money without any other
election in anticipation of sales taxes or of the receipt of the proceeds of said bonds
and to issue interim notes to evidence the amount so borrowed; except that the
aggregate amount of the interim notes may not exceed the amount so authorized
by the election. Any interim notes may mature at such time not exceeding a period
of time equal to the estimated time needed to effect the purposes for which the
bonds are authorized to be issued, plus two years, as the board may determine.
Except as otherwise provided in this section, interim notes shall be issued as
provided in this article for district securities.

(2) Sales taxes, proceeds of bonds to be thereafter issued or reissued, and
bonds issued for the purpose of securing the payment of interim notes, or any
combination thereof, may be pledged for the purpose of securing the payment of
the interim notes. Any bonds pledged as collateral security for the payment of any
interim notes shall mature at such time 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
interim notes, whichever date is the earlier. Any such bonds pledged as collateral
security shall not be issued in an aggregate principal amount exceeding the
aggregate principal amount of the interim notes or interim notes 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 interim notes so secured, exceeds the
maximum net effective interest rate authorized.

(3) For the purpose of funding any interim notes, any bonds pledged as
collateral security to secure the payment of such interim notes, upon their
surrender as pledged property, may be reissued without an election, and any bonds
not previously issued but authorized to be issued at an election may be issued for
such a funding. Any such bonds shall mature at such time as the board may
determine, but in no event exceeding forty years from the date of either any of the
interim notes so funded or any of the bonds so pledged as collateral security,
whichever date is earlier. Bonds 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 in this article for district securities.

(4) No interim 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 the provisions of this section.

Legislative History

Source: L. 69: p. 726, � 1. C.R.S. 1963: � 89-20-49. L. 70: p. 295, � 108. L. 73: p. 994, � 15.