Payment of bonds - use and disposition of fund.

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(1) (a) At or before the issuance of any bonds under the provisions of this part 2, the department of transportation shall, by resolution of the transportation commission:

  1. Establish a schedule of fees, fares, and tolls to be charged for the use of the project;and

  2. Create a special sinking fund in the state treasury for the payment of the principal ofand the interest on the bonds authorized to be issued promptly as the same, respectively, become due.

(b) Into the fund there shall be set aside and pledged by the department of transportation all the fees, fares, and tolls and all other income however derived resulting from the operation of the project and all moneys authorized to be set aside and pledged from the state highway fund not exceeding in any one year one hundred percent of the total of the following:

  1. The amount of principal and interest falling due during such year; and

  2. The amount required to be paid into the special sinking fund as a reasonable reservefor the payment of the bonds authorized in this part 2 in accordance with the resolution of the transportation commission authorizing their issuance as approved by the joint resolution of the senate and house of representatives.

  1. The department of transportation may, by resolution of the transportation commission passed prior to the issuance of the bonds or in the trust indenture, covenant to pay the cost of maintaining, repairing, and operating any turnpike constructed under the provisions of this part 2, and, inasmuch as such turnpike will at all times belong to the state, such resolution shall have the force of contract between the state and the holders of the bonds issued for such turnpike.

  2. To the extent that the fund provided for in this section is not required for the paymentof bonds and the creation of a reserve fund and a sinking fund, the same shall be used to pay the cost of maintaining, repairing, and operating the turnpike project pursuant to section 43-3-212.5. Nothing in this section shall be construed as impairing the obligation of the state to maintain and operate any such turnpike project as a state highway.

  3. The bonds issued under this part 2 shall constitute an irrevocable charge against thespecial sinking fund. Separate accounts shall be kept in the office of the state treasury of the funds derived from each project against the revenues of which bonds are issued under this part 2. The resolution of the transportation commission may contain such other provisions or covenants not inconsistent with the provisions of this part 2 as the department of transportation may consider advisable to insure the payment of the bonds.

Source: L. 49: p. 606, § 6. CSA: C. 143, § 125(6). CRS 53: § 120-8-6. L. 56, 1st Ex. Sess.: p. 39, § 6. C.R.S. 1963: § 120-8-6. L. 91: IP(1), (1)(b), (2), and (3) amended, p. 1115, § 166, effective July 1. L. 96: Entire section amended, p. 464, § 5, effective April 23.


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