(1) Subject to the
provisions of this part 7, the executive director, on behalf of the department, from
time to time, may issue revenue anticipation notes for the purpose of financing any
qualified federal aid transportation projects.
(2) (a) Subject to the provisions of this subsection (2), the principal of and
interest on revenue anticipation notes and any costs associated with the issuance
and administration of such notes shall be payable solely from:
(I) Federal transportation funds and state matching funds that are allocated
on an annual basis for such purpose by the commission, in its sole discretion, in
accordance with section 43-1-113;
(II) Any proceeds of such notes and any earnings from the investment of
such note proceeds pledged for such purpose; and
(II.5) Repealed.
(III) Any other revenues, funds, or other security pledged for such purpose
that do not constitute revenues or funds of the state.
(b) The owners or holders of the revenue anticipation notes may not look to
any other revenues of the state for the payment of the notes.
(c) (I) (A) The portion of the principal of and interest on revenue anticipation
notes and the costs associated with the issuance and administration of such notes
that may be paid from federal transportation funds pursuant to federal law and any
agreement between the United States department of transportation and the
department or the political subdivision that is or is to be the initial recipient of such
federal transportation funds, hereinafter referred to in this subsection (2) as the
federal share of principal, interest, and costs, shall be paid from federal
transportation funds that the commission, in its sole discretion, has allocated on an
annual basis for this purpose in accordance with section 43-1-113.
(B) If federal transportation funds are not sufficient to pay the federal share
of principal, interest, and costs when due, the executive director shall request and
the commission may grant such request to temporarily pay the federal share of
principal, interest, and costs with state matching funds that the commission, in its
sole discretion, has allocated on an annual basis for this purpose in accordance with
section 43-1-113.
(II) Notwithstanding the provisions of section 43-1-220 (2)(c) and (2)(h), the
state highway fund, the state highway supplementary fund, or both, shall be
reimbursed for the amount of moneys in said fund or funds used in accordance with
subparagraph (I) of this paragraph (c) from federal transportation funds that the
commission determines are not needed in the future to pay the federal share of
principal, interest, and costs.
(d) No moneys credited to the state highway fund that are required to be
expended in accordance with the provisions of section 18 of article X of the state
constitution shall be allocated and used to pay revenue anticipation notes financing
any qualified federal aid transportation project that is not a state highway project
or to pay any costs associated with the issuance and administration of such notes.
(3) (a) The executive director shall issue revenue anticipation notes pursuant
to a certificate executed by the executive director, a trust indenture between the
executive director and any commercial bank or trust company having full trust
powers, or any other instrument issued by the executive director.
(b) As the executive director deems appropriate, the certificate, trust
indenture, or other instrument authorizing revenue anticipation notes may contain
such provisions setting forth the rights and remedies of the owners or holders of
the revenue anticipation notes, may contain such provisions for protecting and
enforcing the rights and remedies of the owners or holders of the revenue
anticipation notes as the executive director deems appropriate, and may contain
such other provisions that the executive director deems appropriate for the security
of the owners or holders of the revenue anticipation notes. Such provisions may
include, but shall not be limited to, provisions regarding letters of credit, insurance,
stand-by credit agreements, or other forms of credit ensuring timely payment of
the revenue anticipation notes, including the redemption price or the purchase
price, and provisions regarding the reimbursement of providers of such credit out of
revenues available for the payment of principal of and interest on the revenue
anticipation notes for any amounts paid by such providers with respect to such
notes.
(4) (a) Subject to the provisions of paragraph (b) of this subsection (4),
revenue anticipation notes may be issued in such aggregate principal amount, may
be issued in one or more series, may bear such dates, may be in such denomination
or denominations, may mature on any date or dates, may mature in such amount or
amounts, may be in such form, may be payable at such place or places, may be
subject to such terms of redemption with or without a premium, may contain such
provisions as the executive director deems appropriate regarding insurance to
ensure the timely payment of the notes, and may contain such other provisions not
inconsistent with the provisions of this part 7 as the executive director may
determine.
(b) The aggregate amount of annual installments of principal and interest on
all revenue anticipation notes issued pursuant to this part 7 that are scheduled to
be paid during any given fiscal year, determined as of the date of issuance of each
series of notes, shall not exceed an amount equal to fifty percent of the aggregate
amount of federal transportation funds paid to the department during the fiscal
year immediately preceding the fiscal year in which such series of notes is issued.
(5) The rate or rates of interest borne by the revenue anticipation notes may
be fixed, adjustable, or variable or any combination thereof without regard to any
interest rate limitation appearing in any other law of this state. If any rate or rates
are adjustable or variable, the standard, index, method, or formula shall be
determined by the executive director.
(6) Revenue anticipation notes may be sold at public or private sale and may
be sold at, above, or below the principal amounts thereof. The sale of such notes
shall not be subject to the Procurement Code, articles 101 to 112 of title 24, C.R.S.
(7) Revenue anticipation notes shall be signed on behalf of the department
by the executive director and the chief engineer of the department. Pursuant to
article 55 of title 11, C.R.S., the signatures of the executive director and the chief
engineer of the department may be facsimile signatures imprinted, engraved,
stamped, or otherwise placed on the revenue anticipation notes. If all of the
signatures on the revenue anticipation notes are facsimile signatures, provision
shall be made for a manual authenticating signature on the revenue anticipation
notes by or on behalf of a designated authenticating agent.
(8) The power to fix the date of sale of the revenue anticipation notes, to
receive bids or proposals, to award and sell revenue anticipation notes, to fix
interest rates, and to take all other action necessary to sell and deliver the notes
may be delegated to an agent of the executive director.
(9) Any outstanding revenue anticipation notes may be refunded by the
executive director pursuant to article 56 of title 11, C.R.S. All revenue anticipation
notes are declared to be negotiable instruments.
(10) The executive director is authorized to engage the services of such
consultants, financial advisors, underwriters, bond insurers, letter of credit banks,
rating agencies, agents, or other persons whose services may be required or
deemed advantageous by the executive director in connection with such revenue
anticipation notes. The executive director shall contract for such services in
accordance with the Procurement Code, articles 101 to 112 of title 24, C.R.S.;
except that contracting for services of bond insurers, letter of credit banks, and
rating agencies shall not be subject to the Procurement Code.
(11) The executive director may, with respect to revenue anticipation notes
that have been issued or proposed revenue anticipation notes, enter into interest
rate exchange agreements in accordance with article 59.3 of title 11, C.R.S.
(12) (a) The proceeds from the issuance of revenue anticipation notes that
are not otherwise pledged for the payment of such notes, state matching funds, or
federal transportation funds, any of which have been allocated on an annual basis
by the commission, in its sole discretion, in accordance with section 43-1-113 for the
payment of revenue anticipation notes or any costs associated with the issuance
and administration of such notes, are pledged and shall be used only for the
purpose or purposes for which such revenues are allocated. The proceeds from the
issuance of revenue anticipation notes that are pledged pursuant to section 43-4-707 (1) shall be used only for the purpose or purposes for which such revenues are
pledged. Any such pledge shall be valid and binding from the time the commission
makes the allocation; except that any pledge of revenue anticipation note proceeds
pursuant to section 43-4-707 (1) shall be valid and binding from the date of
issuance of such notes. The pledge shall create a valid security interest, and such
revenues shall immediately be subject to the lien of the pledge and security
interest without any physical delivery or further act, and the lien of the pledge and
security interest shall be valid and binding against all parties having claims of any
kind in tort, contract, or otherwise against the pledging party irrespective of
whether such claiming party has notice of such lien. The instrument by which the
pledge and security interest is created need not be recorded or filed in order to
perfect such pledge and security interest.
(b) Notwithstanding any other provision of law to the contrary, including but
not limited to section 24-91-103.6, C.R.S., the lien of the pledge and security
interest on any revenue anticipation note proceeds shall not affect the authority of
the department to enter into contracts for the design and construction of any
qualified federal aid transportation project.
(13) (a) Notwithstanding any other provision of this part 7 to the contrary, the
executive director shall have the authority to issue revenue anticipation notes
pursuant to this part 7 only if voters statewide approve the ballot question
submitted at the November 1999 statewide election pursuant to section 43-4-703
(1) and only then to the extent allowed under the maximum amounts of debt and
repayment cost so approved.
(b) Repealed.