In re Interrogatories case brief
Citation: 193 Colo. 298
Colorado Housing Finance Authority Act - issued bonds to provide finds for the achievement of low-income housing goals.
The bill was designed in order to create a reserve fund.
With the fund, the bonds were to be sold in the national bond market.
The senate questioned the court: "whether the bill violated sections of the Colorado state constitution?"
Court says: No
Court ruled that the authority, as a political subdivision of the state, has the power to incur obligations in its own name. Its obligations thus did not constitute a constitutional debt of the state.
Also, the appropriation did not constitute a debt because it was discretionary and nonobligatory.
NOT A PLEDGE
Furthermore, the appropriation did not constitute a pledge of the state's credit.
-This is because no debt was created and there was no lending of credit.
DID NOT MINGLE PUBLIC AND PRIVATE FUNDS.
FURTHERED A VALID PUBLIC PURPOSE.
The Housing Authority has a reserve fund.
If the reserve fund needs replenished - go to the legislature.
The legislature may appropriate the funds to pay and the governor may approve.
Issue: Whether the state is on the hook for this debt - is it government debt?
Citation: 193 Colo. 298
Colorado Housing Finance Authority Act - issued bonds to provide finds for the achievement of low-income housing goals.
The bill was designed in order to create a reserve fund.
With the fund, the bonds were to be sold in the national bond market.
The senate questioned the court: "whether the bill violated sections of the Colorado state constitution?"
Court says: No
Court ruled that the authority, as a political subdivision of the state, has the power to incur obligations in its own name. Its obligations thus did not constitute a constitutional debt of the state.
Also, the appropriation did not constitute a debt because it was discretionary and nonobligatory.
NOT A PLEDGE
Furthermore, the appropriation did not constitute a pledge of the state's credit.
-This is because no debt was created and there was no lending of credit.
DID NOT MINGLE PUBLIC AND PRIVATE FUNDS.
FURTHERED A VALID PUBLIC PURPOSE.
The Housing Authority has a reserve fund.
If the reserve fund needs replenished - go to the legislature.
The legislature may appropriate the funds to pay and the governor may approve.
Issue: Whether the state is on the hook for this debt - is it government debt?
Holding: No, it is not government debt because there is no legal obligation.
Analysis:
Analysis:
-The government may replenish the reserve.
-The state is not required to pay you if the revenue backing is not sufficient.
-Not a legally enforceable promise.
-The state is not required to pay you if the revenue backing is not sufficient.
-Not a legally enforceable promise.