§ 37-46-118 — Board bound by financing plan

Colorado § 37-46-118

• Jurisdiction: Colorado
• Title 37: Water and
• Art.: Colorado River Water Conservation District

Text

(1) The board of directors of the
district shall be bound by the plan of financing set forth in the petition for the
organization of the subdistrict and approved by decree of the district court. The
appointment of appraisers shall not be necessary in the event that the plan adopted
provides that general obligations of the subdistrict are to be issued or provides for
the issuance of revenue warrants which are a lien and charge upon the rental and
income from the irrigation works or reservoirs or other improvements to be
constructed under the plan adopted and the rental derived from any such works.

(2) The warrants shall be payable in such denominations, with a maximum
net effective interest rate which may be fixed by the board of directors of said
district pursuant to the order and decree of the court. Such warrants shall bear
interest such that the net effective interest rate of the warrants does not exceed
the maximum net effective interest rate authorized. The board shall pledge the
income and rentals from said irrigation works or water supplied therethrough, and
the subdistrict shall not be otherwise obligated for the payment thereof.

(3) At the time said revenue warrants are issued, the board of directors of
the district shall make and enter in the minutes of the proceeding a resolution in
which the due dates of said revenue warrants, the rate of interest thereon, the
general provisions of said bonds, and a recital that the same are payable out of
rental and income only are set forth and shall require the payment of an
assessment or annual rental charge by the persons who are to use or derive benefit
from the water or other service furnished through said improvements or works,
sufficient to meet said payments, and the resolution shall be irrepealable during the
time that any of said revenue warrants are outstanding and unpaid. The revenue
warrants shall be signed Water Users' Association No. .... in the Colorado River
Water Conservation District, By .............., President. Attest .............., Secretary or
Special Improvement District No. .... in the Colorado River Water Conservation
District, By .............., President. Attest .............., Secretary. They shall be
countersigned by the treasurer.

(4) General obligation bonds of said subdistrict shall be signed in the same
manner as provided in this section for revenue warrants and shall recite that the
same are issued pursuant to the provisions of this article and are to be payable at
the time and in the manner and with the rate of interest therein specified and that
the same were issued under and pursuant to a decree of court and a resolution of
the board of directors authorizing the issue of said obligations and referring to the
date of said resolution. Said bonds shall further recite that they are payable from
funds to be derived by assessments and tax levies against the property in said
subdistrict and not otherwise, and that the same are not to be deemed as an
obligation of the Colorado river water conservation district but only as an obligation
of said subdistrict, and that the district itself is not obligated in any manner for the
payment of said bonds.

Legislative History

Source: L. 37: p. 1015, � 14. CSA: C. 138, � 199(14). CRS 53: � 149-8-14. C.R.S. 1963: � 150-7-14. L. 70: p. 440, � 7.