(1) For the purpose of raising funds from time to time for erecting, purchasing, otherwise acquiring, reconstructing, improving, adding to, extending, bettering, equipping, and furnishing, or any combination thereof, a student memorial center consisting of one or more buildings on the campus of the university of Colorado, the board of regents thereof, designated as the "regents of the university of Colorado" (in this section sometimes designated as the "board"), is authorized to enter into contracts with persons or corporations advancing money for such purposes, under which contracts the board is authorized to pledge the net income from the student memorial center, its facilities, and special student fees assessed for the purpose of financing the student memorial center or any part of such net income to the repayment of any sums so advanced and interest thereon.
The board shall not pledge the general income of the university or create any mortgage upon property belonging to such institution or obligate the state of Colorado for the purpose of repaying or receiving any funds raised or advanced under the provisions of this section.
For the purpose of evidencing any such loan, the board may issue, in its name and onits behalf, notes, debentures, bonds, or other evidences of indebtedness, in this section sometimes designated as "obligations".
Any obligations may be refunded by the board, subject to provisions concerning theirpayment and any other contractual limitations in any proceedings authorizing the issuance of the obligations or otherwise appertaining thereto, by the issuance of obligations to refund, pay, and discharge all or any part of outstanding obligations for the purpose of avoiding or terminating any default, reducing interest costs or effecting other economies, or modifying or eliminating restrictive contractual limitations concerning the outstanding obligations of the student memorial center, or any combination thereof.
Any obligations issued for refunding purposes either may be delivered in exchangefor the outstanding obligations being refunded or may be publicly or privately sold.
No obligations may be refunded under this section unless the holders thereof voluntarily surrender them for exchange or payment or unless they either mature or are callable for prior redemption under their terms within ten years from the date of issuance of the refunding obligations. Provision shall be made for paying the obligations within said period of time. The principal amount of the refunding obligations may exceed the principal amount of the refunded obligations if the aggregate principal and interest costs of the refunding obligations do not exceed such unaccrued costs of the obligations refunded. The principal amount of the refunding obligations may also be less than or the same as the principal amount of the obligations being refunded so long as provision is duly and sufficiently made for the payment of the refunded obligations.
The proceeds of refunding obligations shall either be immediately applied to the retirement of the obligations to be refunded or placed in escrow in any state or national bank within the state which is a member of the federal deposit insurance corporation to be applied to the payment of the obligations being refunded upon their presentation therefor. To the extent any incidental expenses have been capitalized, such refunding obligation proceeds may be used to defray such expenses. Any accrued interest and any premium appertaining to a sale of refunding obligations may be applied to the payment of the interest thereon, the principal thereof, or both interest and principal or deposited in a reserve therefor as the board may determine. Any such escrow shall not necessarily be limited to proceeds of refunding obligations but may include other moneys available for its purpose. Any proceeds in escrow, pending such use, may be invested or reinvested in securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S. Such proceeds and investments in escrow, together with any interest to be derived from any such investment, shall be in an amount at all times sufficient as to principal, interest, any prior redemption premium due, and any charges of the escrow agent payable therefrom to pay the obligations being refunded as they become due at their respective maturities or due at any designated prior redemption date in connection with which the board exercises a prior redemption option. Any purchaser of any obligation issued under this section shall in no manner be responsible for the application of the proceeds thereof by the board or any of its officers, agents, or employees.
Refunding obligations may be made payable from any net revenues derived from thestudent memorial center, or any portion thereof, notwithstanding that the pledge of such revenues for the payment of the outstanding obligations being refunded is thereby modified.
Obligations for refunding and obligations for any other purpose authorized may beissued separately or in combination in one series or more.
The board shall establish a maximum net effective interest rate for obligations issued under this section. Such obligations shall bear interest at a rate or rates such that the net effective interest rate of the issue of obligations does not exceed the maximum net effective interest rate established. Such interest shall be payable semiannually or annually and evidenced by one or two sets of coupons, if any, executed with the facsimile or manually executed signature of any official or officials of the board; except that the first coupon or coupons appertaining to any obligation may evidence interest not in excess of one year, and such obligations may be in one series or more, may bear such date or dates, may mature at such time or times not exceeding forty years from their respective dates, may be designated or redesignated, may be in such denomination or denominations, may be payable in such medium of payment, at such place or places within or without the state, may carry such registration privileges, may be subject to such terms of prior redemption in advance of maturity in such order or by lot or otherwise at such time or times with or without a premium, may be executed in such manner, may bear such privileges for reissuance in the same or other denominations, may be so reissued without modification of maturities and interest rates, and may be in such form, either coupon or registered, as may be provided by resolution of the board.
The obligations shall never be sold at a price such that the net effective interest rateof the issue of obligations exceeds the maximum net effective interest rate established.
Obligations may be issued with privileges for conversion or registration, or both,for payment as to principal or interest, or both. If interest accruing on the obligations is not represented by interest coupons, the obligations may provide for the endorsing of payments of interest thereon. The obligations generally shall be issued in such manner, in such form, either coupon or registered, with such recitals, terms, and provisions for subordination of subsequently issued obligations and such covenants and conditions, and with such other details as may be provided by the board, except as otherwise provided in this section.
All obligations and the income therefrom shall be exempt from taxation, exceptinheritance, estate, and transfer taxes.
All moneys received from the issuance of any obligations authorized in this sectionshall be used solely for the purpose for which issued and the cost of any project designated by the board and authorized in this section, including interest or discount on obligations, or both; cost of issuance of obligations; architectural, engineering, and inspection costs and legal expenses; costs of financial, professional, and other estimates and advice; contingencies; any administrative, operating, and other expenses of the board appertaining to a student memorial center prior to and during such acquisition or improvement and equipment, and additionally during a period of not exceeding one year after the completion thereof, as may be estimated and determined by the board in any resolution authorizing the issuance of any obligations or other instrument appertaining thereto, and all such other expenses as may be necessary or incident to the financing, acquisition, improvement, equipment, and completion of said center or part thereof, the placing of the same in operation, and also any provision or reserves for working capital, operation, maintenance, or replacement expenses, or for payment or security of principal of or interest on any obligations during or after such acquisition or improvement and equipment as the board may determine, and also reimbursements to the board, any bank, other corporation, or any other person of any moneys previously expended for the purposes of said center; except that any accrued interest and any premium appertaining to a sale of obligations may be applied to the payment of the interest thereon and the principal thereof, or both interest and principal, or may be deposited in a reserve therefor, as the board may determine.
The powers conferred by this section shall be in addition and supplemental to andnot in substitution for, and the limitations imposed by this section shall not affect, the powers conferred by any other law. Obligations may be issued under this section without regard to the provisions of any other law. Insofar as the provisions of this section are inconsistent with the provisions of any other law, the provisions of this section shall be controlling.
Source: L. 49: p. 732, §§ 1, 2. CSA: C. 169, § 36(1). CRS 53: § 124-2-34. L. 63: pp. 869, 873, §§ 1, 2. C.R.S. 1963: § 124-2-24. L. 70: p. 346, § 3. L. 89: (7) amended, p. 1110, § 15, effective July 1.