Bankruptcy of Districts

C.R.S. tit. 37, art. 32

in effect

C.R.S. § 37-32-101 Legislative declaration

37-32-101. Legislative declaration. The general assembly declares that this article is necessary by reason of general economic conditions now prevailing in the agricultural sections of this state. Said conditions make it impossible for the owners of land in many such districts to pay the general and special taxes and assessments levied against their property. As a result thereof the delinquencies seriously affect the ability of counties and other governmental agencies in which such districts are located to obtain the revenue necessary to conduct governmental functions. The relief afforded to such districts by this article is urgently necessary in order to permit the performance of local governmental functions of the state in those sections thereof in which such districts are located.

C.R.S. § 37-32-102 Irrigation or drainage districts authorized to file petition and carry out plan of composition

37-32-102. Irrigation or drainage districts authorized to file petition and carry out plan of composition. Any irrigation or drainage district organized under the laws of the state of Colorado is authorized to take advantage of the provisions of an act of the congress of the United States entitled "An Act to establish a uniform system of bankruptcy throughout the United States.", approved July 1, 1898, and all acts amendatory thereof or supplementary thereto. Any such district is hereby specifically authorized to file the petition mentioned in chapter 9 of the federal bankruptcy code of 1978 (Title 11 of the United States Code). Any such district is authorized to take any necessary requisite or proper action to carry out the plan of composition filed with said petition, or any modification of such plan thereafter accepted in writing by such district, if such original or modified plan is also approved by the United States district court having jurisdiction of the matter.

C.R.S. § 37-32-103 Directors to adopt resolution

37-32-103. Directors to adopt resolution. Before the filing of such petition, the board of directors of such district shall adopt a resolution authorizing the filing thereof.

C.R.S. § 37-32-104 Issuance of new bonds

37-32-104. Issuance of new bonds. (1) If the plan of composition approved by the United States district court provides for the issuance of new bonds of such district and deposit thereof with such court, or such agency as it may appoint for the purpose, for the delivery of such new bonds to the creditors of the district in exchange for outstanding evidences of indebtedness of the district, such new bonds may be issued: (a) In the case of an irrigation district, under the provisions of sections 37-43-144 to 37-43-155, or under any other law; and (b) In the case of a drainage district, either: (I) In the manner and with the rights of enforcement and privileges of payment provided for by article 25 of this title, insofar as applicable; (II) Under the provisions of article 26 of this title, insofar as applicable; or (III) Under any other law adopted after March 20, 1939.

C.R.S. § 37-32-105 Districts may cancel taxes or assessments

37-32-105. Districts may cancel taxes or assessments. In carrying out any such plan of composition of its indebtedness, any such district has power to cancel or reduce any taxes or assessments theretofore levied or made by said district for the purpose of raising money to pay the principal of or interest upon bonds or warrants sought to be refunded by such plan, upon any real property in such district, and to cancel or reduce any interest, penalties, or costs that may have accrued by reason of any delinquency in the payment of such taxes or assessments.

C.R.S. § 37-32-106 Powers not limited by article

37-32-106. Powers not limited by article. The enumeration of powers in this article shall not exclude powers not mentioned in this article which may be necessary for, or incidental to, the accomplishment of the purposes of this article and the carrying out of such plan of composition.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-37.docxFetched: 10/6/2026