Utah Code > Title 63J > Chapter 6 > § 63J-6-202 - Issuance -- Financing plan required -- Contents -- Order setting terms of notes -- Recitations in notes -- Report of sales -- Disposition of proceeds
Current as of: 2010
(1) If the state treasurer considers it to be in the best interests of the state to issue tax and revenue anticipation notes under Section 63J-6-201, the state treasurer shall issue the notes in accordance with this chapter.
(2) (a) Prior to the issuance and sale of any tax or revenue anticipation note to other than a state fund or account, the state treasurer shall prepare a written plan of financing which shall be filed with the governor. The plan of financing shall provide for the terms and conditions under which the notes will be issued, sold, and delivered, the taxes or revenues to be anticipated, the maximum amount of notes which may be outstanding at any one time under the plan of financing, the sources of payment of the notes issued pursuant to the plan of financing, and all other details relating to the issuance, sale, and delivery of the notes. The sources of payment of the notes issued pursuant to the plan of financing may include the proceeds of sale of notes issued to refund outstanding tax or revenue anticipation notes and to pay accrued interest on them.
(b) The plan of financing shall specify the rates of interest, if any, on the notes or a method, formula, or index pursuant to which the interest rates on the notes may be determined during the time the notes are outstanding.
(c) The state treasurer may include in the plan of financing the terms and conditions of arrangements entered into by the state treasurer on behalf of the state with financial and other institutions for letters of credit, standby letters of credit, reimbursement agreements, and remarketing, indexing, and tender agent agreements to secure the tax anticipation notes, including payment from any legally available source of fees, charges, or other amounts coming due under the agreements entered into by the treasurer.
(3) The interest, form, manner of execution, payment, manner of sale, prices at, above, or below face value, and all details of issuance of the notes shall be set forth in an order of the state treasurer. The order and the details set forth in the order shall conform with any applicable plan of financing and with this chapter.
(4) Each note shall recite that it is a valid obligation of the state and that the faith and credit of the state are pledged for the payment of the principal of and interest on the note from the revenues of the fiscal year in which the note is issued in accordance with its terms and the constitution and laws of Utah.
(5) Immediately upon the completion of any sale, the state treasurer shall make a verified return of the sale to the state auditor, specifying the amount of notes sold, the persons to whom the notes were sold, and the price, terms, and conditions of the sale. Immediately upon the sale of any notes, the state treasurer shall credit the proceeds of sale, other than accrued interest, to the General Fund.
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