(1) (a) Except as otherwise provided in paragraphs (b) and (c) of this subsection (1), if the general assembly passes and the governor signs a joint resolution that requires the submission of a ballot issue to voters statewide that seeks authorization for the state to incur multiple-fiscal year financial obligations by issuing critical needs notes and the voters approve the ballot issue an issuing authority may issue, on one or more occasions, notes, which shall have a maximum maturity of no more than twenty-five years. The board or the executive director, as applicable, shall determine the specific dates on which the issuing authority issues notes, the principal amount of notes to be issued on any date, and the redemption and other terms of notes.

(b) An issuing authority shall issue notes only for the purposes, under the terms, and up to the maximum amounts approved by voters through the approval of a statewide ballot issue.

(c) If the amount of excess state revenues that is retained by the state as authorized by voters statewide through their approval of House Bill 05-1194, enacted at the first regular session of the sixty-fifth general assembly, at the November 2005 statewide election for any state fiscal year that immediately precedes a state fiscal year in which an issuing authority may issue notes is less than the maximum amount of annual payments of principal and interest on notes authorized by voters statewide for the state fiscal year in which the issuing authority may issue notes or any subsequent state fiscal year, the general assembly, by passage of a joint resolution, may, but shall not be required to, limit the maximum amount of scheduled annual payments of principal and interest on notes issued after the effective date of the joint resolution to any amount that is greater than or equal to the difference between the amount of excess state revenues retained and the amount of scheduled annual payments of principal and interest on notes issued prior to the effective date of the joint resolution. The passage of a joint resolution limiting the maximum amount of scheduled annual payments of principal and interest on notes shall not affect the voter authorization of notes, including, but not limited to, any restriction on the scheduled annual payments of principal and interest on notes or any other terms specified in the voter-approved ballot issue that authorized the issuance of the notes. The general assembly, by passage of a subsequent joint resolution, may remove or modify any limit imposed by joint resolution on the maximum amount of scheduled annual payments of principal or interest on notes, subject to any limits set forth in the voter-approved ballot issue that authorized the issuance of the notes.

(2) (a) An issuing authority shall issue notes pursuant to a certificate executed by the board or the executive director, a trust indenture between the issuing authority and any commercial bank or trust company having full trust powers, or any other instrument issued or executed by the issuing authority.

(b) As the board or the executive director deems appropriate, the certificate, trust indenture, or other instrument authorizing notes may contain provisions setting forth the rights and remedies of the owners or holders of the notes, provisions for protecting and enforcing the rights and remedies of the owners or holders of the notes, and any other provisions for the security of the owners or holders of the notes. The provisions may include, but shall not be limited to, provisions regarding letters of credit, insurance, stand-by credit agreements, or other forms of credit ensuring timely payment of the notes, including the redemption price or the purchase price, and provisions regarding the reimbursement of providers of the credit from moneys available for the payment of principal of and interest on the notes for any amounts paid by the providers with respect to the notes.

(3) (a) A certificate, trust indenture, or other instrument authorizing the issuance of notes in accordance with the provisions of this article may pledge to the payment of notes all or any portion of the proceeds from the issuance of such notes and the moneys appropriated to the critical needs fund pursuant to section 24-115-111 to pay the principal or interest on notes. Proceeds and moneys pledged shall be used only for the purpose or purposes for which they are pledged. Any pledge of the proceeds of notes shall be valid and binding from the date of issuance of the notes. Any pledge of moneys appropriated to the fund shall be valid and binding from the time the moneys were appropriated to the fund pursuant to section 24-115-111. A pledge shall create a valid security interest, proceeds and moneys pledged shall immediately be subject to the lien of the pledge and security interest without any physical delivery or further act, and the lien of the pledge and security interest shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party irrespective of whether the claiming party has notice of the lien. The instrument by which the pledge and security interest is created need not be recorded or filed in order to perfect the pledge and security interest.

(b) An issuing authority shall apply the gross proceeds of notes issued pursuant to subsection (1) of this section that are not pledged to the payment of the notes or allocated to the payment of costs associated with the issuance and administration of the notes for the purposes specified in the ballot issue approved by voters of the state that authorized the issuance of the notes.

(4) Subject to the provisions of subsection (1) of this section, notes may be issued in any aggregate principal amount, may be issued in one or more series by the corporation or in three or more series by the department, may bear any dates, may be in any denomination or denominations, may mature on any date or dates, may mature in any amount or amounts, may be in any form, may be payable at any place or places, may be subject to any terms of redemption with or without a premium, may contain any provisions that the board or the executive director deems appropriate regarding insurance to ensure the timely payment of the notes, and may contain any other provisions not inconsistent with the provisions of this article as the board or the executive director may determine; except that the maximum amount of notes that the department may issue before January 1, 2007, is six hundred million dollars.

(5) The rate or rates of interest borne by notes may be fixed, adjustable, or variable, or any combination thereof, without regard to any interest rate limitation appearing in any other law of this state. If any rate or rates are adjustable or variable, the standard, index, method, or formula shall be determined by the board or the executive director.

(6) Notes may be sold at public or private sale and may be sold at, above, or below the principal amounts thereof. The sale of notes shall not be subject to the "Procurement Code", articles 101 to 112 of this title, but when contracting for necessary and advisable services connected to the issuance of notes, the board or the executive director, whichever is applicable, shall use an open and transparent competitive selection process determined by the board or the executive director that provides the public sufficient information to evaluate the process.

(7) Notes shall be signed on behalf of the state by the members of the board, or by the executive officer of the board if authorized by the board, or by the executive director. Pursuant to article 55 of title 11, C.R.S., the applicable signature or signatures may be one or more facsimile signatures imprinted, engraved, stamped, or otherwise placed on the notes. If all of the signatures on notes are facsimile signatures, provision shall be made for a manual authenticating signature on the notes by or on behalf of a designated authenticating agent.

(8) Subject to the provisions of subsection (1) of this section, the power to fix the date of sale of notes, to receive bids or proposals, to award and sell notes, to fix interest rates, and to take all other action necessary to sell and deliver notes may be delegated to an agent of the board or the executive director.

(9) Any outstanding notes may be refunded by the board or the executive director pursuant to article 56 of title 11, C.R.S.

(10) The board or the executive director is authorized to engage the services of any investment bankers, consultants, financial advisors, underwriters, note insurers, letter of credit banks, rating agencies, agents, note counsel or other legal counsel, or other persons whose services may be required or deemed advantageous by the board or the executive director in connection with notes. The board or the executive director shall not be subject to the "Procurement Code", articles 101 to 112 of this title, when engaging services but shall use an open and transparent competitive selection process determined by the board or the executive director that provides the public sufficient information to evaluate the process.

(11) The board or the executive director may, with respect to notes that have been issued or proposed, enter into interest rate exchange agreements in accordance with article 59.3 of title 11, C.R.S.

(12) The executive director and any member or employee of the board are immune from personal liability for any action taken within the scope of their authority under this article.