(1)  In a contract with the federal government for annual contributions, the authority may obligate itself to convey to the federal government possession of or title to the project upon the occurrence of a substantial default, as defined in the contract, with respect to the covenants and conditions to which the authority is subject.

Terms Used In Utah Code 35A-8-424

  • authority: means a public body corporate and politic created by this part. See Utah Code 35A-8-401
  • Contract: A legal written agreement that becomes binding when signed.
  • Federal government: includes the United States of America, the Department of Housing and Urban Development, or any other agency or instrumentality, corporate or otherwise, of the United States. See Utah Code 35A-8-401
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • project: means a work or undertaking, on contiguous or noncontiguous sites to:
(i) demolish, clear, or remove buildings from a blighted area;
(ii) provide or assist in providing decent, safe, and sanitary urban or rural dwellings, apartments, or other living accommodations for persons of medium and low income by any suitable methods, including rental, sale of individual units in single or multifamily structures under conventional condominium, cooperative sales contract, lease-purchase agreement, loans, or subsidizing of rentals or charges; or
(iii) accomplish a combination of Subsections (11)(a)(i) and (ii). See Utah Code 35A-8-401
(2)  This obligation is specifically enforceable and does not constitute a mortgage, notwithstanding any other laws.

(3)  In case of conveyance, the federal government may complete, operate, manage, lease, convey, or otherwise deal with the project and funds in accordance with the terms of the contract if the contract by its terms requires the federal government, as soon as practicable after it is satisfied that all defaults have been cured and that the project will be operated in accordance with the contract, to reconvey the project to the authority.

Renumbered and Amended by Chapter 212, 2012 General Session

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