§ 37-95-109 — Bonds or notes - issuance - terms

Colorado § 37-95-109

• Jurisdiction: Colorado
• Title 37: Water and
• Art.: Colorado Water Resources and

Text

(1) The authority has the
power and is hereby authorized from time to time to issue its bonds or notes in such
principal amounts as in the opinion of the board are necessary to provide sufficient
funds for any of its corporate purposes, including the payment, funding, or
refunding of the principal of, or interest or redemption premiums on, any bonds or
notes issued by it, whether the bonds or notes or interest to be funded or refunded
have or have not become due, and including the establishment or increase of such
reserves to secure or to pay such bonds or notes or interest thereon and all other
costs or expenses of the authority incident to and necessary to carry out its
corporate purposes and powers. The authority shall subsidize some or all of the
cost of issuance of bonds and notes pursuant to this article for projects, including
small water resources projects, to build water management facilities that are raw
water diversion or storage projects that are jointly sponsored by two or more
governmental agencies that do not share the same governing body.

(2) Except as may be otherwise expressly provided in this article or by the
authority, every issue of bonds or notes shall be special obligations payable out of
any revenues or funds of the authority, subject only to any agreements with the
holders of particular bonds or notes pledging any particular revenues or funds. The
authority may issue such types of bonds or notes as it may determine, including,
without limiting the generality of the foregoing, bonds or notes as to which the
principal and interest are payable:

(a) Exclusively from the revenues and receipts of the part of the project
financed with the proceeds of such bonds or notes;

(b) Exclusively from the revenues and receipts of certain designated parts of
the project, whether or not the same are financed in whole or in part from the
proceeds of such bonds or notes; or

(c) From its revenues and receipts generally.

(3) Any such bonds or notes may be additionally secured by a pledge of any
grant, subsidy, or contribution from the United States or any agency or
instrumentality thereof, or the state or any governmental agency thereof, or any
person, firm, or corporation or by a pledge of any income or revenues, funds, or
moneys of the authority from any source whatsoever.

(4) Whether or not the bonds and notes are of such form and character as to
be negotiable instruments under the terms of the Uniform Commercial Code, title
4, C.R.S., the bonds and notes are hereby made negotiable instruments within the
meaning of and for all the purposes of said title 4, subject only to the provisions of
the bonds and notes for registration.

(5) Bonds or notes of the authority shall be authorized by a resolution or
resolutions of the board, and may be issued in one or more series, and shall bear
such date or dates, mature at such time or times, bear interest at such rate or rates
of interest per annum, be in such denomination or denominations, be in such form,
either coupon or registered, carry such conversion or registration privileges, have
such rank or priority, be executed in such manner, be payable from such sources in
such medium of payment at such place or places within or without the state, and be
subject to such terms of redemption (with or without premium) as such resolution or
resolutions may provide.

(6) Bonds or notes of the authority may be sold at public or private sale at
such price or prices and in such manner as the board shall determine.

(7) Bonds or notes may be issued under the provisions of this article without
obtaining the consent of any department, division, commission, board, bureau, or
agency of the state and without any other proceeding or the happening of any other
conditions or other things than those proceedings, conditions, or things which are
specifically required by this article.

(8) Bonds and notes of the authority issued under the provisions of this
article shall not be in any way a debt or liability of the state or of any political
subdivision thereof other than the authority and shall not create or constitute any
indebtedness, liability, or obligation of the state or of any such political subdivision
or be or constitute a pledge of the faith and credit of the state or of any such
political subdivision, but all such bonds and notes, unless funded or refunded by
bonds or notes of the authority, shall be payable solely from revenues or funds
pledged or available for their payment as authorized in this article. Each bond and
note shall contain on its face a statement to the effect that the authority is
obligated to pay the principal thereof or the interest thereon only from revenues or
funds of the authority and that neither the state nor any political subdivision
thereof is obligated to pay such principal or interest and that neither the faith and
credit nor the taxing power of the state or any political subdivision thereof is
pledged to the payment of the principal of or the interest on such bonds or notes.

(9) All expenses incurred in carrying out the provisions of this article shall be
payable solely from revenues or funds provided or to be provided under the
provisions of this article, and nothing in this article shall be construed to authorize
the authority to incur any indebtedness or liability on behalf of or payable by the
state or any political subdivision thereof.

Legislative History

Source: L. 81: Entire article added, p. 1803, � 1, effective July 1. L. 2003: (1) amended, p. 1367, � 1, effective April 25.