§ 37-43-153 — Provisions of contract

Such contract and the proceedings
taken by any such district pursuant thereto and in connection with the authorization
and issue of refunding bonds, in case the indebtedness of such district is reduced
by the issuance of such refunding bonds, may include provisions whereby the board
of directors of said district covenants and agrees on behalf of said district to levy
and collect assessments in excess of the amounts which would meet the principal
of and the interest on said bonds as the same fall due if all such assessments were
paid in full, in order to create and maintain a reserve fund to ensure the prompt
payment of the principal of and interest on said bonds; but such covenants and
agreements shall never provide for assessments in amounts greater than such
assessment would have been had such indebtedness of such district not been so
reduced. Said provisions and covenants, when included in the proceedings adopted
by the board of directors of any such district, shall inure to the holders of said
refunding bonds.

Legislative History

Source: L. 35: p. 668, � 2. CSA: C. 90, � 530. CRS 53: � 149-3-52. C.R.S. 1963: � 150-3-52.