C.R.S.
Section 29-4-114
Provisions of bonds, mortgages, or trust indentures
(1)
In connection with the issuance of bonds or the incurring of any obligations under a lease, and in order to secure the payment of such bonds or obligations, the city has power:(a)
To pledge by resolution, trust indenture, mortgage subject to the limitations imposed in this part 1, or other contract all or any part of the rents, fees, or revenues of its housing projects;(b)
To covenant against mortgaging all or any part of its housing projects, then owned or thereafter acquired, or against permitting or suffering any lien thereon;(c)
To covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any housing projects or any part thereof, or with respect to limitations on its right to undertake additional housing projects;(d)
To covenant against pledging all or any part of the rents, fees, and revenues of housing projects to which its right then exists or the right to which may thereafter come into existence, or against permitting or suffering any lien thereon;(e)
To provide for the release of property, rents, fees, and revenues from any pledge or mortgage, and to reserve rights and powers in or the right to dispose of property which is subject to a pledge or mortgage;(f)
To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, or other instrument, as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof;(g)
To covenant as to what other or additional debt may be incurred by it to finance housing projects or otherwise;(h)
To provide for the terms, form, registration, exchange, execution, and authentication of bonds;(i)
To provide for the replacement of lost, destroyed, or mutilated bonds;(j)
To covenant that it warrants the title to the premises;(k)
To covenant as to the fees and rentals to be charged, the amount, calculated as may be determined, to be raised each year or other period of time by fees, rentals, and other revenues, and as to the use and disposition to be made thereof;(l)
To covenant as to the use of any or all of its housing projects;(m)
To create or to authorize the creation of special funds in which there are segregated:(I)
All the proceeds of any loan or grant;(II)
All of the rents, fees, and revenues of any housing project or parts thereof;(III)
All of the taxes collected for the payment of such bonds;(IV)
Any moneys held for the payment of the costs of operation and maintenance of such housing project or as a reserve for the meeting of contingencies in the operation and maintenance thereof;(V)
Any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for such payment; and(VI)
Any moneys held for any other reserves or contingencies; and to covenant as to the use and disposal of the moneys held in such funds;(n)
To redeem the bonds, to covenant for their redemption, and to provide the terms and conditions thereof;(o)
To covenant against extending the time for the payment of bond interest, directly or indirectly, by any means or in any manner;(p)
To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holder of which must consent thereto, and the manner in which such consent may be given;(q)
To covenant as to the maintenance of its housing projects, the replacement thereof, the insurance to be carried thereon, and the use and disposition of insurance moneys;(r)
To vest in an obligee of the city the right, in the event of the failure of the city to observe or perform any covenant on its part, to cure any such default and to advance any moneys necessary for such purpose, and the moneys so advanced may be made an additional obligation of the city with such interest, security, and priority as may be provided in any trust indenture, mortgage, lease, or contract of the city with reference thereto;(s)
To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;(t)
To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation;(u)
To covenant to surrender possession of all or any part of any housing project in the event of default, as defined in the trust indenture, mortgage, lease, or contract with reference thereto, and to vest in an obligee the right, without judicial proceedings, to take possession and to use, operate, manage, and control such housing projects or any part thereof, and to collect and receive all rents, fees, and revenues arising therefrom in the same manner as the city and the authority might do, and to dispose of the moneys collected in accordance with the agreement of the city with such obligee;(v)
To vest in a trustee the right to enforce any covenant made to secure, to pay, or, in relation to the bonds, to provide for the powers and duties of such trustee, to limit liabilities thereof, and to provide the terms and conditions upon which the trustee or the holders of bonds or any proportion of them may enforce any such covenant;(w)
To make covenants in addition to the covenants expressly authorized by this section, of like or different character;(x)
To execute all instruments necessary or convenient in the exercise of the powers granted in this section or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified as the government or any purchaser of the bonds of the city may reasonably require;(y)
To make such covenants and to do all such acts and things as are necessary, convenient, or desirable in order to secure its bonds, or in the absolute discretion of the city tend to make the bonds more marketable, notwithstanding that such covenants, acts, or things may not be enumerated in this section. It is the intention of this section to give the city power to do all things in the issuance of bonds and in the provision for their security that are not inconsistent with the constitution of Colorado, and no consent or approval of any judge or court shall be required thereof; but the city has no power to mortgage all or any part of its property, real or personal, except as provided in section 29-4-115.
Source:
Section 29-4-114 — Provisions of bonds, mortgages, or trust indentures, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-29.pdf (accessed Oct. 20, 2023).
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