§ 37-45-138 — Board to execute contracts - issue bonds

To pay for
construction, operation, and maintenance of said works, and expenses preliminary
and incidental thereto, the board is authorized to enter into a contract with the
United States or any agency thereof, providing for payment in installments or to
issue negotiable bonds of the district. If bonds are authorized, the board shall set a
maximum net effective interest rate, and such bonds shall bear interest at a rate
such that the net effective interest rate of the issue of bonds does not exceed the
maximum net effective interest rate authorized. Interest shall be payable annually
or semiannually and shall be due and payable not more than fifty years from their
dates. The form, terms, and provisions of said bonds, provisions for their payment,
and conditions for their retirement and calling, not inconsistent with law, shall be
determined by the board, and they shall be issued in payment of the works,
equipment, expenses, and interest during the period of construction. When any
bonded indebtedness has been authorized pursuant to section 37-45-139, and when
the board has entered into a contract with the United States or any agency thereof
whereby the United States or any agency thereof has agreed to purchase such
bonds, at an interest rate established in such contract, the board may issue interim
notes bearing interest at a net effective interest rate not exceeding the maximum
net effective interest rate authorized for the bonds, the interim notes to be payable
at the termination of such contract, or at such time not exceeding three years after
the date of their issuance and on such terms and conditions as the board may
determine. No interim note may be extended or funded except by the issuance of
bonds. Bonds also may be issued to pay interim notes as they become due or may
be exchanged for the interim notes as the board may determine. Said bonds or
interim notes shall be executed in the name of and on behalf of the district and
signed by the president of the board with the seal of the district affixed thereto and
attested by the secretary of the board. Said bonds or interim notes shall be in such
denominations as the board shall determine and shall be payable to bearer and may
be registered in the office of the county treasurer of the county wherein the
organization of the district has been effected, with the interest coupons payable to
bearer, which coupons shall bear the facsimile signature of the president of the
board. Such bonds and interim notes shall be exempt from all state, county,
municipal, school, and other taxes imposed by any taxing authority of the state of
Colorado. Such bonds or interim notes may be sold at par, above par, or below par,
but the net effective interest rate to the district, including any discount, but
exclusive of any discount payable for costs of the issue, shall not exceed the
maximum net effective interest rate authorized for such issue of bonds. Such bonds
or interim notes may be used as security for any depository bond or obligation
where any kind of bonds or other securities must or may, by law, be deposited as
security. Any resolution authorizing, or other instrument appertaining to, any bonds
or interim notes under this article may provide that each bond or interim note
therein authorized shall recite that it is issued under authority of this article. Such
recital shall be conclusive evidence of full compliance with all of the provisions of
this article, and all bonds and interim notes issued containing such recital shall be
incontestable for any cause whatsoever after their delivery for value.

Legislative History

Source: L. 37: p. 1351, � 31. CSA: C. 173B, � 45. CRS 53: � 149-6-33. C.R.S. 1963: � 150-5-3. L. 69: p. 1233, � 1. L. 70: p. 437, � 3.