C.R.S. Section 23-71-607
Application of bond proceeds

  • procedures
  • limitations

(1)

The proceeds derived from the issuance of any refunding bonds under the provisions of this part 6 shall either be immediately applied to the payment or redemption and retirement of the bonds to be refunded and the cost and expense incident to such procedures or shall immediately be placed in escrow to be applied to the payment of said bonds upon their presentation therefor and the costs and expenses incident to such proceedings and for no other purpose whatsoever until the bonds being refunded have been paid in full and discharged and all accrued interest thereon has also been paid in full, upon which occurrences the escrow shall terminate, and any moneys remaining therein shall be returned to the district’s bond redemption fund.

(2)

Any such escrowed proceeds, pending such use, may be invested or, if necessary, reinvested only in securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S., maturing at such times as to insure the prompt payment of the bonds refunded under the provisions of this part 6 and the interest accruing thereon.

(3)

Such escrowed proceeds and investments, together with any interest to be derived from such investments, shall be in an amount which at all times is sufficient to pay the bonds refunded as they become due at their respective maturities or as they are called for redemption and payment on prior redemption dates, as to principal, interest, any prior redemption premium due, and any charges of the escrow agent payable therefrom. The computations made in determining such sufficiency shall be verified by a certified public accountant.

(4)

For the purpose of implementing the provisions of this part 6, the committee of any district has the power to enter into escrow agreements and to establish escrow accounts with any commercial bank having full trust powers located within the state of Colorado and a member of the federal deposit insurance corporation under protective covenants and agreements whereby such accounts shall be fully secured by securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S., or shall be invested in such securities only, in such amounts as will be sufficient and maturing at such times so as to insure the prompt payment of the bonds refunded and the interest accruing thereon, under the provisions of this part 6.

(5)

In no event shall the aggregate amount of bonded indebtedness of any district exceed the maximum allowable amount as determined pursuant to section 23-71-504; except that in determining and computing such aggregate amount of bonded indebtedness of any district, bonds which have been refunded, as provided in this part 6, either by immediate payment or redemption and retirement or by the placement of the proceeds of refunding bonds in escrow, shall not be deemed outstanding indebtedness from and after the date on which sufficient moneys are placed with the paying agent of such outstanding bonds for the purpose of immediately paying or redeeming and retiring such bonds or from and after the date on which the proceeds of said refunding bonds are placed in escrow.

(6)

The issuance of refunding bonds by any district for the purposes of and in the manner authorized by this part 6, or by the provisions of any other law, shall never be interpreted or taken to be the creation of an indebtedness such that the same would require the approval at an election held in accordance with part 5 of this article, and no such approval shall be required for the issuance of such refunding bonds except as is specifically required by the law under which said refunding bonds are sought to be issued or have been issued.

(7)

No bonds may be refunded under the provisions of this part 6 unless the holders thereof voluntarily surrender said bonds for immediate exchange or immediate payment or unless said bonds either mature or are callable for redemption prior to their maturity under their terms within ten years after the date of issuance of the refunding bonds, and provisions shall be made for paying or redeeming and discharging all of the bonds refunded within said period of time.

(8)

No bonds shall be refunded under the provisions of this part 6 within a period of one year following the actual issuance and delivery thereof to their initial purchasers unless the proceeds of said refunding bonds are immediately applied to the payment or redemption and retirement of the bonds being refunded.

(9)

No bonds shall be issued under the provisions of this part 6 for the purpose of refunding any refunding bonds unless the original bonds refunded by said refunding bonds have previously been paid or redeemed and retired.

Source: Section 23-71-607 — Application of bond proceeds - procedures - limitations, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-23.­pdf (accessed Oct. 20, 2023).

23‑71‑101
Short title
23‑71‑102
Definitions
23‑71‑102.5
Local district college - local college district - change in terms - authority of revisor
23‑71‑103
Districts organized - when
23‑71‑104
Petition of electors
23‑71‑105
Election to organize
23‑71‑107
Qualifications of voters - conduct of elections
23‑71‑109
Record of votes
23‑71‑110
Election of board - members and terms
23‑71‑111
Election of first board - new district
23‑71‑114
Candidates for board of trustees
23‑71‑118
Officers
23‑71‑119
Regular meetings
23‑71‑120
District - body corporate
23‑71‑120.5
Recall of board members
23‑71‑121
Vacancies
23‑71‑122
Local college district board of trustees - specific powers - rules - definitions
23‑71‑123
Duties of board of trustees - degrees
23‑71‑124
President - duties
23‑71‑125
Secretary - duties
23‑71‑126
Treasurer - duties
23‑71‑127
Credits accepted by state institutions
23‑71‑128
Additions to district - procedure
23‑71‑129
Dissolution of district
23‑71‑130
Bonds as legal investments
23‑71‑131
Local district colleges subject to section 29-1-302
23‑71‑133
Local district colleges - attorney general to advise - revenue for baccalaureate degree programs
23‑71‑134
Local district colleges - bachelor of applied science degree programs - approval
23‑71‑135
Local district colleges - high school diplomas - approval
23‑71‑201
Definitions
23‑71‑202
Joining state system - state support
23‑71‑203
Submission of plan for joining state system
23‑71‑204
Approval of plan - election
23‑71‑205
Withdrawal from state system
23‑71‑206
Northeastern junior college - approval of plan - date of entry into state system - continuation of mill levy
23‑71‑207
Colorado Northwestern community college - approval of plan - date of entry into system - continuation of mill levy
23‑71‑208
Colorado Northwestern community college - disposal of assets
23‑71‑301
Direct grants to local college districts - occupational courses
23‑71‑302
Distribution of grants
23‑71‑303
Distributions to area technical colleges
23‑71‑304
Area technical college grant program - established - report - definitions - repeal
23‑71‑401
Definitions
23‑71‑402
Certification - tax revenues
23‑71‑403
Change in needed tax revenues - unlawful
23‑71‑404
County treasurer - accounts - warrants
23‑71‑405
Depositories
23‑71‑406
Registered warrants by treasurer of the board of trustees
23‑71‑407
Short-term loans
23‑71‑501
Definitions
23‑71‑502
Bonded indebtedness - elections
23‑71‑503
Limitations on elections
23‑71‑504
Limit of bonded indebtedness
23‑71‑514
Board of trustees may issue bonds - exemption from Colorado income tax
23‑71‑515
Form of bonds
23‑71‑516
Sale at less than par - discount
23‑71‑517
Board of trustees to certify needed revenues
23‑71‑518
Tax levy to pay principal and interest
23‑71‑519
Bond fund - payment and redemption
23‑71‑520
Place of payment
23‑71‑521
Registration of bonds
23‑71‑522
Changes in boundaries - liability
23‑71‑523
Validation
23‑71‑524
Prior obligations not impaired
23‑71‑525
Public disclosure of terms of sale
23‑71‑526
Validation
23‑71‑527
Validation - effect - limitations
23‑71‑601
Definitions
23‑71‑602
Refunding bonds may be issued
23‑71‑603
Question of issuing refunding bonds
23‑71‑604
Authorization - form - interest
23‑71‑605
Sale - proceeds - amounts
23‑71‑606
Needed revenues - tax levy - miscellaneous
23‑71‑607
Application of bond proceeds - procedures - limitations
23‑71‑608
Reports
23‑71‑609
Validation
23‑71‑610
Prior obligations not impaired
23‑71‑701
Short title
23‑71‑702
Definitions
23‑71‑703
Power to issue securities
23‑71‑704
Interim securities
23‑71‑705
Terms of securities
23‑71‑706
Payable from special fund
23‑71‑707
Recital of regularity
23‑71‑708
Committee determination conclusive
23‑71‑709
No impairment of contract
23‑71‑710
Tax exemption
23‑71‑711
Construction
23‑71‑712
Liberal construction
23‑71‑713
Validation
Green check means up to date. Up to date

Current through Fall 2024

§ 23-71-607’s source at colorado​.gov