Utah Code 11-42-606. Assessment bonds are not a local entity’s general obligation — Liability and responsibility of a local entity that issues assessment bonds
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(1) Assessment bonds are not a general obligation of the local entity that issues them.
Terms Used In Utah Code 11-42-606
- Assessment bonds: means bonds that are:(3)(a) issued under Section
11-42-605 ; and(3)(b) payable in part or in whole from assessments levied in an assessment area, improvement revenues, and a guaranty fund or reserve fund. See Utah Code 11-42-102- Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
- Guaranty fund: means the fund established by a local entity under Section
11-42-701 . See Utah Code 11-42-102- Local entity: means :
(31)(a) a county, city, town, special service district, or special district;(31)(b) an interlocal entity as defined in Section11-13-103 ;(31)(c) the military installation development authority, created in Section63H-1-201 ;(31)(d) a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;(31)(e) the Utah Inland Port Authority, created in Section11-58-201 ; or(31)(f) any other political subdivision of the state. See Utah Code 11-42-102- 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.
- Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102
- Reserve fund: means a fund established by a local entity under Section
11-42-702 . See Utah Code 11-42-102- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) A local entity that issues assessment bonds:(2)(a) may not be held liable for payment of the bonds except to the extent of:(2)(a)(i) funds created and received from assessments against which the bonds are issued;(2)(a)(ii) improvement revenues; and(2)(b) is responsible for:(2)(b)(i) the lawful levy of all assessments;(2)(b)(ii) the collection and application of improvement revenues, as provided in this chapter;(2)(b)(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and(2)(b)(iv) the faithful accounting, collection, settlement, and payment of:(2)(b)(iv)(A) assessments and improvement revenues; and(2)(b)(iv)(B) money in a guaranty fund or, if applicable, a reserve fund.(3) If a local entity illegally assesses property that is exempt from assessment, the local entity:(3)(a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and(3)(b) shall pay the amount for which it is liable under Subsection (3)(a) from the local entity’s general fund or other legally available money.