(1) The proceeds derived from the issuance of any refunding bonds under the provisions of this part 7 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 or purposes 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 funds remaining therein shall be returned to the county and may be used to pay other bonds of the county.
The costs and expenses incident to the refunding of outstanding bonded indebtedness, the issuance of refunding bonds, and the establishment and maintenance of escrow accounts, pursuant to the provisions of this part 7, may be paid from any moneys or funds of the county which are legally available therefor. Any moneys or funds of the county legally available therefor may be placed in any escrow account established under the provisions of this article and may be used and expended for the purposes specified in the escrow agreement if such procedure is deemed by the governing body to be in the best interests of the county.
Any escrowed funds, pending such use, may be invested or, if necessary, reinvestedonly 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 article and the interest accruing thereon.
Escrowed funds and investments, together with any interest to be derived from suchinvestments, shall be in an amount which at all times shall be 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.
For the purpose of implementing the provisions of this part 7, the governing body ofany county shall have the power to enter into escrow agreements and to establish escrow accounts with any commercial bank having full trust powers located within this state which is a member of the federal deposit insurance corporation under protective covenants and agreements whereby such accounts shall be fully secured by direct obligations of the United States, or shall be invested in such direct obligations 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 7.
In no event shall the aggregate amount of bonded indebtedness of any county exceedthe maximum allowable amount as determined pursuant to the provisions of the state constitution, statutes, and charter applicable to such county. In determining and computing such aggregate amount of bonded indebtedness of any home rule county, bonds which have been refunded, as provided in this part 7, 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 such an escrow.
The issuance of refunding bonds by any home rule county for the purposes and in themanner authorized by this article, or under the provisions of any other enabling law, shall never be interpreted or taken to be the creation of an indebtedness which would require the approval of the qualified electors of the county, and no such approval shall be required for the issuance of such refunding bonds except as is specifically required by this part 7 or such other law under which said refunding bonds are sought to be issued or have been issued.
No bonds may be refunded under the provisions of this part 7 unless the holdersthereof 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 from 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.
Source: L. 81: Entire article added, p. 1480, § 1, effective June 8. L. 89: (3) amended, p. 1114, § 24, effective July 1.