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Bonds issued pursuant to this chapter shall not be a debt of the City, and the City shall not be liable on the bonds, nor shall the City thereby pledge its full faith and credit for payment of the bonds, nor shall the bonds be payable out of any funds other than the special assessments and other monies pledged to the payment of the bonds. No property of the City shall be liable to be forfeited or taken in payment of the bonds. (Ord. 2771; 1968 Code §12-64; Ord. 01-42)
Bonds issued by the City shall not be invalid for any irregularity or defect in the proceedings for their issuance, sale or delivery and shall be incontestable in the hands of bona fide purchasers or holders for value. (Ord. 2771; 1968 Code §12-75; Ord. 01-42)
Local improvement bonds shall have an issue date. The bonds shall also have a date of maturity which does not exceed the estimated life of the bonded improvements, but in any event the date of maturity shall not exceed twenty (20) years from the issue date of the bond. The bonds shall bear interest payable annually, or at a lesser interval or intervals, as may be prescribed by the bond ordinance. The bonds shall be payable in United States dollars at those places designated by the bond ordinance. At the option of the City Council the bonds may be in one or more series, and may be made subject to prior redemptions in advance of maturity with or without the payment of a premium or premiums. No premium shall exceed five percent (5%) of the principal amount of each bond redeemed.
The bonds may be issued with privileges for registration for payment as to principal or interest, or both, and generally shall be issued in a manner and form, with recitals, terms, covenants, conditions and other details, as may be determined by the Council in the ordinance or ordinances authorizing the bonds, except as otherwise provided. (Ord. 2771; 1968 Code §12-66; Ord. 82-34; Ord. 01-42)
Except for payment provisions specifically provided, local improvement bonds and any interest coupons attached to the bonds shall be fully negotiable within the meaning of and for all the purposes of the Colorado Uniform Commercial Code-Investment Securities. (Ord. 2771; 1968 Code §12-66; Ord. 01-42)
Except for bonds which are registrable for payment of interest, interest coupons shall be payable to bearer. The interest coupons shall be attached to the bonds and shall bear the original or facsimile signatures of the officers signing the bonds. The bonds and coupons bearing the signatures of the officers in office at the time of signing shall be valid and binding on the City, notwithstanding that before delivery and payment, any or all of the persons whose signatures appear shall have ceased to fill their respective offices. (Ord. 2771; 1968 Code §12-67; Ord. 01-42)
All monies received from the issuance of any authorized bonds shall be used solely for the purpose or purposes for which issued, including, without limitation, if authorized, the payment of preliminary expenses incurred in connection with the purpose, the payment of interest on the bonds for a period not to exceed three (3) years from the date of the bonds, and all other incidental expenses. However, any unexpended balance of bond proceeds remaining after the completion of the acquisition or improvements for which the bonds were issued shall be paid immediately into the fund created for the payment of the bond principal and shall be used in that manner. The validity of the bonds shall not be dependent on or affected by the validity or regularity of any proceedings relating to the acquisition or improvements for which the bonds are issued. The purchaser or purchasers of the bonds shall in no manner be responsible for the application of the proceeds of the bonds by the City or any of the City's officers, agents and employees. (Ord. 2771; 1968 Code §12-68; Ord. 01-42)
Whenever it is considered advisable by the City, and the Chief Financial Officer has funds in the Chief Financial Officer's hands to the credit of any local improvement district exceeding the amount of interest on the unpaid principal accruing on the next principal payment date and, if maturing serially, the principal accruing on the next principal payment date, then the Chief Financial Officer shall, by publication at least once not less than fifteen (15) days prior to the redemption date in a newspaper of general circulation in the City, call in a suitable number of bonds of the local improvement district for payment for the principal amount of those bonds and accrued interest to the redemption date. The notice shall specify the bonds being called by number, and the called bonds shall be paid in the order designated in the authorizing ordinance. After the designated redemption date interest on the called bonds shall stop accruing. Nothing shall be construed as preventing the City from providing that bonds shall be redeemed only on interest payment dates. The holder of any bonds may at any time furnish the holder's post office address to the Chief Financial Officer, and in which case a copy of the advertisement shall be mailed by the Chief Financial Officer to the holder of the bonds called, at the address provided, within three (3) days of the date of notice publication. (Ord. 2771; 1968 Code §12-69; Ord. 01-42; Ord. 11-19)
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