Escrow: Money given to a third party to be held for payment until certain conditions are met.
Residential rehabilitation: means the construction, reconstruction, renovation, replacement, extension, repair, betterment, equipping, developing, embellishing, or otherwise improving residences consistent with standards of strength, effectiveness, fire resistance, durability, and safety, so that the structures are satisfactory and safe to occupy for residential purposes and are not conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime because of any one or more of the following factors:
(a)
defective design and character of physical construction;
(b)
faulty interior arrangement and exterior spacing;
(c)
high density of population and overcrowding;
(d)
inadequate provision for ventilation, light, sanitation, open spaces, and recreation facilities;
(e)
age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses; and
(f)
economic dislocation, deterioration, or disuse, resulting from faulty planning. See Utah Code 11-25-3
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)
refund any outstanding bonds of the agency;
(b)
pay any redemption premiums and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of those bonds; and
(c)
pay all or any part of the cost of additional residential rehabilitation.
(2)
The agency may:
(a)
apply the proceeds of bonds issued for the purpose of refunding any outstanding bonds to the purchase or retirement at maturity or redemption of any outstanding bonds, either at their earliest or any subsequent redemption date or upon the purchase or retirement at their maturity; and
(b)
pending that application, place them in escrow, to be applied to the purchase or retirement at maturity or redemption on the date determined by the agency.
(3)
(a)
Pending use for purchase, retirement at maturity, or redemption of outstanding bonds, any proceeds held in escrow under Subsection (2) shall be invested by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
(b)
The agency shall apply any interest or other increment earned or realized on an investment to the payment of the outstanding bonds to be refunded.
(c)
After the terms of the escrow have been fully satisfied and carried out, any balance of proceeds and any interest or increment earned or realized from the investment of them may be returned to the agency to be used by it for any lawful purpose.
(4)
The agency shall invest that portion of the proceeds of any bonds designated for the purpose of paying all or any part of the cost of additional residential rehabilitation under Subsection (1) by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
(5)
All bonds issued under this section are subject to the provisions of this part in the same manner and to the same extent as other bonds issued under this chapter.
