Colorado § 36-1-129 - Bonds.

§ 36-1-129. Bonds.

(1) When, in the judgment of the state board of land commissioners, a bond, a damage deposit, or earnest moneys by the purchaser of state lands is necessary, the board shall require the purchaser to give the financial warranty upon such conditions as the board may determine.

(2) (a) In leasing state lands for nonagricultural purposes, the state board of land commissioners shall require of the lessee a bond or damage deposit securing the state against loss of rents or other loss or waste, or occupation of the land for more than thirty days after the cancellation or expiration of the lease of the lessee, unless the lessee becomes the purchaser of the land, and the state board of land commissioners shall retain all interest earned on such a bond or damage deposit while held by the state board of land commissioners. In no case shall the lessee be allowed to cut or use more timber than is necessary for the improvement of the land or for fuel for the use of the family of the lessee; and the cutting and hauling of timber to sawmills, to be sawed on shares, is expressly prohibited.

(b) A lessee of state lands shall not be required to post a bond if such lessee is leasing state lands solely for agricultural purposes; except that a bond or damage deposit may be required for state-owned improvements even if leased solely for agricultural purposes.

(3) All bonds, damage deposits, and earnest moneys collected pursuant to this article that the state board of land commissioners has deemed forfeited or required for remediation activities shall be credited to the financial warranty account of the state land board trust administration fund created in section 36-1-145 (2)(e). Moneys in the account, including interest earned on the forfeited bonds, damage deposits, and earnest moneys deposited in the account, are continuously appropriated for the remediation or other activities on the affected property.

Source: L. 19: p. 649, § 22. C.L. § 1175. CSA: C. 134, § 74. CRS 53: § 112-3-30. C.R.S. 1963: § 112-3-30. L. 94: Entire section amended, p. 1682, § 1, effective May 31. L. 2010: Entire section amended, (HB 10-1165), ch. 124, p. 412, § 3, effective April 15. L. 2013: (2)(a) and (3) amended, (HB 13-1274), ch. 376, p. 2214, § 4, effective June 5.

ANNOTATION

Annotator's note. A case relevant to the subject matter of this section which was decided prior to its earliest source has been included in the annotations to this section.

The bond is to protect the state against damages resulting from retention of the premises by the purchaser after failure to make payments and the commission of such waste upon the land as to destroy or impair its value. People v. Clough, 16 Colo. App. 120, 63 P. 1066 (1901).

Certificate of purchase may be made a part of bond. A condition in a bond given by the purchaser of state land whereby he obligates himself to comply with all the terms of the certificate of purchase makes such certificate, with its terms and conditions, a part of the bond. People v. Clough, 16 Colo. App. 120, 63 P. 1066 (1901).

Where bond is in the alternative to either pay or vacate, plaintiff in an action on the bond to recover the purchase price must prove failure to perform both conditions. People v. Clough, 16 Colo. App. 120, 63 P. 1066 (1901).

Where purchaser has option to pay or vacate, the latter requires only a surrender of actual possession. People v. Clough, 16 Colo. App. 120, 63 P. 1066 (1901).