(1) The proceeds derived from the issuance of any refunding bonds under the provisions of this part 2 shall either be immediately applied to the payment, or redemption, and retirement of the bonds to be refunded and the cost and expense incident to such procedures or shall immediately be placed in escrow to be applied to the payment of said bonds upon their presentation therefor and the costs and expenses incident to such proceedings and for no other purpose whatsoever until the bonds being refunded have been paid in full and discharged and all accrued interest thereon has also been paid in full, upon which occurrences the escrow shall terminate, and any funds remaining therein shall be returned to the municipality and may be used to pay other bonds of the municipality. (2) The costs and expenses incident to the refunding of outstanding bonded indebtedness, the issuance of refunding bonds, and the establishment and maintenance of escrow accounts, pursuant to the provisions of this part 2, may be paid from any moneys or funds of the municipality which are legally available therefor. Any moneys or funds of the municipality legally available therefor may be placed in any escrow account established under the provisions of this part 2 and may be used and expended for the purposes specified in the escrow agreement if such procedure is deemed by the governing body to be in the best interests of the municipality. (3) Any escrowed funds, pending such use, may be invested or, if necessary, reinvested in securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S., maturing at such times as to insure the prompt payment of the bonds refunded under the provisions of this part 2 and the interest accruing thereon. (4) Escrowed funds and investments, together with any interest to be derived from such investments, shall be in an amount which at all times shall be sufficient to pay the bonds refunded as they become due at their respective maturities or as they are called for redemption and payment on prior redemption dates as to principal, interest, any prior redemption premium due, and any charges of the escrow agent payable therefrom, and the computations made in determining such sufficiency shall be verified by a certified public accountant. (5) For the purpose of implementing the provisions of this part 2, the governing body of any municipality has the power to enter into escrow agreements and to establish escrow accounts with any commercial bank having full trust powers located within the state of Colorado, which is a member of the federal deposit insurance corporation, under protective covenants and agreements whereby such accounts shall be fully secured by, or shall be invested in, securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S., in such amounts as will be sufficient and maturing at such times as to insure the prompt payment of the bonds refunded and the interest accruing thereon under the provisions of this part 2. (6) In no event shall the aggregate amount of bonded indebtedness of any municipality exceed the maximum allowable amount as determined pursuant to the state constitution, statutes, and charter applicable to such municipality. In determining and computing such aggregate amount of bonded indebtedness of any municipality, bonds which have been refunded as provided in this part 2, either by immediate payment, or redemption, and retirement or by the placement of the proceeds of refunding bonds in escrow shall not be deemed outstanding indebtedness from and after the date on which sufficient moneys are placed with the paying agent of such outstanding bonds for the purpose of immediately paying, or redeeming, and retiring such bonds or from and after the date on which the proceeds of said refunding bonds are placed in such an escrow. (7) The issuance of refunding bonds by any municipality for the purposes and in the manner authorized by this part 2 or under the provisions of any other law enabling such an issuance shall never be interpreted or taken to be the creation of an indebtedness such that the same would require the approval of the registered electors of the municipality, and no such approval shall be required for the issuance of such refunding bonds except as is specifically required by this part 2 or such other law under which said refunding bonds are sought to be issued or have been issued. (8) No bonds may be refunded under the provisions of this part 2 unless the holders thereof voluntarily surrender said bonds for immediate exchange or immediate payment or unless said bonds either mature or are callable for redemption prior to their maturity under their terms within ten years from the date of issuance of the refunding bonds, and provisions shall be made for paying, or redeeming, and discharging all of the bonds refunded within said period of time.
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