C.R.S. § 10-16-1213: Bonds - investments - bonds eligible for investment and exempt from taxation.

(1) (a) On or after January 1, 2027, the enterprise may issue bonds to generate proceeds of up to a total of one hundred million dollars for any of the business purposes specified in this part 12, including to fund the programs specified in this part 12; except that, in determining the total amount of bonds to issue, the enterprise shall take into account and reduce the amount of bonds issued based on the savings realized by the adjustment in the statewide average premium reduction under the reinsurance program pursuant to section 10-16-1205 (2)(f)(II)(A). The bonds shall be issued pursuant to resolution of the board and shall be payable solely out of all or a specified portion of the money in the fund.

(b) Bonds may be executed and delivered by the enterprise at such times; may be in such form and denominations and include such terms and maturities; may be subject to optional or mandatory redemption prior to maturity with or without a premium; may be in fully registered form or bearer form registrable as to principal or interest or both; may bear such conversion privileges; may be payable in such installments and at such times not exceeding forty-five years from the date of issuance; may be payable at such place or places whether within or without the state; may bear interest at such rate or rates per annum, which may be fixed or vary according to index, procedure, or formula or as determined by the enterprise or its agents, without regard to any interest rate limitation appearing in any other law of the state; may be subject to purchase at the option of the holder or the enterprise; may be evidenced in such manner; may be executed by such officers of the enterprise, including the use of one or more facsimile signatures so long as at least one manual signature appears on the bonds, which may be either of an officer of the enterprise or of an agent authenticating the same; may be in the form of coupon bonds that have attached interest coupons bearing a manual or facsimile signature of an officer of the enterprise; and may contain such provisions not inconsistent with this part 12, all as provided in the resolution of the board under which the bonds are authorized to be issued or as provided in a trust indenture between the enterprise and any commercial bank or trust company having full trust powers.

(c) Bonds of the enterprise may be sold at public or private sale at such price or prices, in such manner, and at such times as determined by the board, and the board may pay all fees, expenses, and commissions that it deems necessary or advantageous in connection with the sale of the bonds. The power to fix the date of sale of the bonds, to receive bids or proposals, to award and sell bonds, to fix interest rates, and to take all other action necessary to sell and deliver the bonds may be delegated to an officer or agent of the enterprise. Any outstanding bonds may be refunded by the enterprise pursuant to article 56 of title 11. All bonds and any interest coupons applicable to the bonds are declared to be negotiable instruments.

(d) The resolution or trust indenture authorizing the issuance of the bonds may pledge all or a portion of the fund; may pledge all or a portion of the rights of the enterprise to impose, and receive the revenues generated by, the fee authorized by section 10-16-1205 (1)(a)(I) and any other revenues generated or received by the enterprise, other than any federal money the enterprise may receive; may contain such provisions for protecting and enforcing the rights and remedies of holders of any of the bonds as the enterprise deems appropriate; may set forth the rights and remedies of the holders of any of the bonds; and may contain provisions that the enterprise deems appropriate for the security of the holders of the bonds, including provisions for letters of credit, insurance, standby credit agreements, or other forms of credit ensuring timely payment of the bonds, including the redemption price or the purchase price.

(e) Any pledge of the fund is valid and binding from the time the pledge is made. The pledged fund is immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of the pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party regardless of whether the claiming party has notice of the lien. The instrument by which the pledge is created need not be recorded or filed.

(f) Neither the members of the board, nor employees of the enterprise, nor any person executing the bonds is liable personally on the bonds or subject to any personal liability by reason of the issuance of the bonds.

(g) The enterprise may purchase its bonds out of any available money and may hold, pledge, cancel, or resell such bonds subject to and in accordance with agreements with the bond holders.

(2) The enterprise may invest or deposit any proceeds and any interest from the sale of bonds in the manner provided by part 6 of article 75 of title 24. In addition, an issuing enterprise may direct a corporate trustee that holds the bond proceeds and any interest to invest or deposit the proceeds and interest in investments or deposits other than those specified by said part 6 if the board determines, by resolution, that the investment or deposit meets the standard established in section 15-1-304, the income is at least comparable to income available on investments or deposits specified by said part 6, and the investment will assist the enterprise in funding programs specified in this part 12.

(3) All banks, trust companies, savings and loan associations, insurance companies, executors, administrators, guardians, trustees, and other fiduciaries may legally invest any money within their control in any bonds issued under this part 12. Public entities, as defined in section 24-75-601 (1), may invest public money in such bonds only if the bonds satisfy the investment requirements established in part 6 of article 75 of title 24.

(4) The income or other revenues of the enterprise, the bonds issued by the enterprise, and the transfer of and the income from any bonds issued by the enterprise are exempt from all taxation and assessments in the state. In the resolution or indenture authorizing the bonds, the enterprise may waive the exemption from federal income taxation for interest on the bonds. Bonds issued by the enterprise are exempt from the provisions of article 51 of title 11.