Colorado Code § 32-1-1401

Legislative declaration
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The general assembly hereby declares this part 14
to be necessary in order to provide for the orderly and equitable payment of the obligations of
local taxing districts organized under the provisions of this article, which payment may be
effected by a plan of adjustment of the debts of such taxing districts under the federal bankruptcy
law. The general assembly further declares that the necessity of such taxing districts availing
themselves of the provisions of the federal bankruptcy law results from unanticipated economic
and fiscal conditions affecting such taxing districts, rendering such taxing districts unable to
discharge their indebtedness as the same becomes due and imposing a severe hardship on the
taxpayers therein to the detriment not only of the credit of such taxing districts and that of all
political subdivisions of the state of Colorado but also of the creditors of such taxing districts.

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