(1) All moneys received from the issuance of any securities authorized in this part 5 shall be used solely for the purposes for which issued and the cost of any project thereby delineated.
Any accrued interest and any premium shall be applied to the payment of the intereston or the principal of the securities, or both interest and principal, or shall be deposited in a reserve therefor, as the board may determine.
Any unexpended balance of such security proceeds remaining after the completion ofthe acquisition or improvement and equipment of the project or the completion of the purposes for which such securities were issued shall be paid immediately into the fund created for the payment of the principal of said securities and shall be used therefor, subject to the provisions as to the times and methods for their payment as stated in the securities and the proceedings authorizing or otherwise appertaining to their issuance, or in a reserve therefor.
The validity of said securities shall not be dependent on nor affected by the validityor regularity of any proceedings relating to the acquisition or improvement and equipment of the project or the proper completion of any project for which the securities are issued.
The purchasers of the securities shall in no manner be responsible for the applicationof the proceeds of the securities by the district or any of its officers, agents, and employees.
Source: L. 62: p. 211, § 14. C.R.S. 1963: § 89-15-27.