Colorado § 23-70-108 - Pledge of income.

§ 23-70-108. Pledge of income.

(1) When the Auraria board enters into a contract for the advancement of moneys described in section 23-70-107, the board is authorized, in connection with or as a part of such contract, to pledge special student fees or the net income derived or to be derived from such land or facilities so constructed, acquired, and equipped or special student fees and said net income as security for the repayment of the moneys advanced therefor, together with interest thereon, and for the establishment and maintenance of reserves in connection therewith; and, for the same purpose, the Auraria board is also authorized to use the net income derived from the Tivoli brewery and parking areas associated with the Tivoli brewery and to pledge the net income derived from any other auxiliary facility which is not individually designated as an enterprise and which is not acquired and not to be acquired with moneys appropriated to the Auraria board by the state of Colorado and to pledge the net income, fees, and revenues derived from said sources, if such be unpledged, or, if pledged, the net income, fees, and revenues currently in excess of the amount required to meet principal, interest, and reserve requirements in connection with outstanding obligations to which such net income, fees, and revenues have theretofore been pledged.

(2) Any advancement of moneys may be evidenced by interim warrants, if necessary, and bonds to be executed by and on behalf of the Auraria board containing such terms and provisions, including provisions for redemption prior to maturity, as may be determined by the Auraria board. Such warrants or bonds may, at the discretion of the Auraria board, be registrable as to principal or interest, or both, and shall never be sold at less than ninety-five percent of the principal amount thereof and accrued interest thereon to the date of delivery or at a price which will result in a net effective interest rate which exceeds that specified in the contract for the advancement of moneys. Any of the warrants or bonds of the Auraria board issued pursuant to this section or any other law may be refunded pursuant to article 54 of title 11, C.R.S., if in the judgment of the Auraria board such refunding shall be to its best interests. Such refunding obligations may be made payable from any source which may be legally pledged for the payment of the obligations being refunded at the time of the issuance of the obligations so refunded or from any of the sources described in subsection (1) of this section, notwithstanding that the pledge for the payment of the outstanding obligations being refunded is thereby modified.

(3) In the event that the pledged net income, fees, and revenues exceed the amount required to meet principal, interest, and reserve requirements in connection with revenue bonds of the institution to which such income has been pledged, the Auraria board may retain such surplus and utilize the same for such purposes as in its judgment shall be in the best interests of the center, including, but not limited to, rehabilitation, alteration, addition to, or equipping of any existing auxiliary facilities, as defined in section 23-5-101.5 (2)(a), acquired pursuant to the provisions of this section and the acquisition of sites for the construction, acquisition, and equipping of additional auxiliary facilities pursuant to such provisions or for prior redemption of outstanding bonds. Use of such surplus shall be reviewed in advance by the student advisory committee to the Auraria board.

(4) Anticipation warrants or bonds issued pursuant to this section may be used as security for any depository bond or obligation where any kind of bond or other security must or may, by law, be deposited as security.

Source: L. 74: Entire article added, p. 393, § 1, effective May 13. L. 75: (1) amended, p. 746, § 2, effective April 9. L. 86: (1) amended, p. 842, § 1, effective April 3. L. 93: (1) and (3) amended, p. 1824, § 6, effective June 6.