§ 43-3-207 — Bond lien

Colorado § 43-3-207

• Jurisdiction: Colorado
• Title 43: Transportation
• Art.: Special Highway Construction

Text

(1) All bonds issued pursuant to section 43-3-203 shall
constitute a first lien on all or any part of the moneys pledged or set aside under
sections 43-3-202 (1)(f) and 43-3-203; except that the department of
transportation may provide preferential security for any bonds to be issued under
section 43-3-203 over any bonds that may be issued under section 43-3-203
thereafter. No moneys which may, from time to time, be credited to the state
highway fund which are derived from sources other than those described in section
43-3-202 (1)(f) or 43-3-203 shall be applied to the payment of the bonds issued
pursuant to section 43-3-203.

(2) Any pledge made by the department of transportation to secure the
payment of bonds issued pursuant to section 43-3-203 shall be valid and binding
from the time when the pledge is made. The revenues, moneys, and funds so
pledged shall immediately be subject to lien of such pledge without any physical
delivery or further act, and the lien of such pledge shall be valid and binding against
all parties having claims of any kind in tort or contract or otherwise against the
department of transportation, irrespective of whether such parties have notice of
such lien. Each pledge, agreement, and resolution made for the benefit or security
of any of the bonds issued pursuant to section 43-3-203 shall continue to be
effective until the principal of and interest on the bonds for the benefit of which the
same are made has been fully paid or provision for such payment has been duly
made.

(3) Any resolution of the transportation commission for the issuance of
bonds pursuant to section 43-3-203 may contain the provisions for protecting and
enforcing the rights and remedies of the holders of any of the bonds as may be
reasonable and proper and not in violation of law, including covenants setting forth
the duties of the department of transportation in relation to the purposes to which
proceeds of the bonds may be applied, the terms and conditions for the issuance of
additional bonds, and the custody, safeguarding, and application of all moneys. Any
such resolution may set forth the rights and remedies of the holders of any bonds
and may restrict the individual right of action by any such holders. In addition, any
such resolution may contain any other provisions as the department of
transportation may deem reasonable and proper for the security of the holders of
any bonds. All expenses incurred in carrying out the provisions of the resolution
may be paid from the revenues or assets pledged or assigned to the payment of the
bonds. In the event of default in any such payment or in any agreements of the
department of transportation made as part of the contract under which the bonds
were issued or contained in the resolution concerning the bonds, the payment or
agreement may be enforced by suit, mandamus, or either of the remedies.

Legislative History

Source: L. 49: p. 606, � 7. CSA: C. 143, � 125(7). CRS 53: � 120-8-7. L. 56, 1st Ex. Sess.: p. 40, � 7. C.R.S. 1963: � 120-8-7. L. 84: Entire section R&RE, p. 1113, � 4, effective April 9. L. 91: Entire section amended, p. 1115, � 167, effective July 1. L. 96: (3) amended, p. 465, � 6, effective April 23.