2021 Colorado Code
Title 5 - Consumer Credit Code
Article 12 - Interest- General Provisions
§ 5-12-104. Warrants to Bear Six Percent

County orders and warrants, town and city and school orders and warrants, and other like evidences or certificates of municipal indebtedness, shall bear interest at the rate of six percent per annum from the date of the presentation thereof for payment at the treasury where the same may be payable, until there is money in the treasury for the payment thereof, except when otherwise specially provided by law. Every county treasurer, town treasurer, and city treasurer to whom any such county, town, city, or school order or warrant is presented for payment, and who shall not have on hand the funds to pay the same, shall endorse thereon the rate of interest said order or warrant will draw, and the date of such presentation, and subscribe such endorsement with his official signature; however, all such orders and warrants may be made to bear a lower rate of interest than above specified, by special agreement between such counties, towns, and cities issuing the same, and the person to whom such orders or warrants are issued.

History. Source: L. 71: R&RE, p. 852, § 1. C.R.S. 1963: § 73-12-104. History. Source: L. 71: R&RE, p. 852, § 1. C.R.S. 1963: § 73-12-104.

Annotator's note. Since § 5-12-104 is similar to repealed laws antecedent to CSA, C. 88, § 4, relevant cases construing those provisions have been included in the annotations to this section.

The evident intent of this section is first, to place a uniform rate of interest upon a specific class of obligations, and second, to make it impossible for county, town, city, or school district officials to agree, as otherwise under § 5-12-103 they might do, to pay a higher rate of interest upon such securities than that fixed by statute. That it was the intention of the general assembly to preclude the recovery of interest, except by express agreement, on all other county, city, town, or school district indebtedness is clear. City of Golden v. W. Lumber & Pole Co., 60 Colo. 382 , 154 P. 95 (1916).

This section in no manner limits, qualifies, or changes the effect and purpose of § 5-12-102 , except as to a particular class of securities; by that section creditors are entitled to interest on claims therein mentioned at the rate of six percent per annum from all debtors. The conclusion reached in Bd. of Comm'rs v. Wheeler, 39 Colo. 207 , 89 P. 50 (1907), which appears to be contra, therefore, has no bearing upon the question of the liability of towns and cities for interest. Any other holding would have the effect to exempt cities and towns from the payment of interest on judgments against them. Section 5-12-104 plainly applies to cities and towns, and gives a creditor the right to recover interest upon claims growing out of business transactions with them, whenever, under like circumstances, he might lawfully do so from a private corporation or individual. City of Golden v. W. Lumber & Pole Co., 60 Colo. 382 , 154 P. 95 (1916).

Thus, towns and cities in business transactions are liable for interest the same as private corporations or individuals. City of Golden v. Western Lumber & Pole Co., 60 Colo. 382 , 154 P. 95 (1916), distinguishing Bd. of Comm'rs v. Wheeler, 39 Colo. 207 , 89 P. 50 (1907) (applied to a county as an involuntary organization).

So counties are liable for interest on interest coupons the same as individuals. Since the evident purpose of this section is to place counties practically upon the same plane as individuals with respect to the payment of interest upon their written evidences of indebtedness, with a limitation as to rate, counties are liable for interest on interest coupons the same as individuals. Bd. of Comm'rs v. Linn, 29 Colo. 446 , 68 P. 839 (1902).

Municipal corporation not liable for interest for services rendered. Under this section municipal corporations cannot in any manner be made liable for or legally pay interest upon an account for services rendered. City of Colo. Springs v. Coray, 25 Colo. App. 460, 139 P. 1031 (1913).