Colorado Code § 32-4-541

Preliminary expenses
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(1) The district may provide for the payment of all
necessary preliminary expenses actually incurred in the making of surveys, estimates of costs
and revenues, the employment of engineers, architects, fiscal agents, attorneys at law, clerical
help, other agents or employees, the making of notices, taking of options, and all other expenses
necessary or desirable to be made and paid prior to the authorization for or the issuance of such
securities, and any other cost of any project.
(2) No such expenditures shall be made or paid unless an appropriation has been
budgeted and made therefor in the same manner as is required by law, or unless the proceeds of
securities or other moneys are available to defray such expenses.
(3) Any funds so expended by the district for preliminary expenses incurred in
connection with the same purpose as that for which securities are issued may be fully reimbursed
and repaid to the district out of the proceeds derived from the sale of such securities.
(4) The amount so advanced by the district to pay such preliminary expenses may, by a
resolution authorizing the issuance of such securities, be made a first charge against such
security proceeds until the same has been repaid as provided in this part 5, and in such event said
amount shall be paid therewith before any other disbursements are made therefrom.

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