11-42-504.  Assessments on property that the local entity acquires at tax sale or foreclosure — Transferring title of property in lieu of paying assessments — Reimbursement.

(1) 

Terms Used In Utah Code 11-42-504

  • Assessment bonds: means bonds that are:
(a) issued under Section 11-42-605; and
(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
  • Assessment fund: means a special fund that a local entity establishes under Section 11-42-412. See Utah Code 11-42-102
  • Bond anticipation notes: means notes issued under Section 11-42-602 in anticipation of the issuance of assessment bonds. See Utah Code 11-42-102
  • Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Guaranty fund: means the fund established by a local entity under Section 11-42-701. See Utah Code 11-42-102
  • Local entity: means :
    (a) a county, city, town, special service district, or special district;
    (b) an interlocal entity as defined in Section 11-13-103;
    (c) the military installation development authority, created in Section 63H-1-201;
    (d) a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;
    (e) the Utah Inland Port Authority, created in Section 11-58-201; or
    (f) any other political subdivision of the state. See Utah Code 11-42-102
  • 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
    • (a)  Each local entity that purchases property at a tax sale or foreclosure under this part shall pay into the assessment fund all applicable annual installments of assessments and interest for as long as the local entity owns the property.

    (b)  A local entity may make payments required under this Subsection (1) from the guaranty fund or reserve fund.

    • (2) 

    (a)  In lieu of making payments under Subsection (1), a local entity may elect to transfer title of the property to the owners of all outstanding assessment bonds, refunding assessment bonds, interim warrants, or bond anticipation notes as payment in full for all delinquent assessments with respect to the property only if:

    (i)  the local entity and owners agree to the election to transfer; and

    (ii)  an indenture, private placement memo, or other document or contract memorializing the terms of debt explicitly discloses the terms of the agreement described in Subsection (2)(a)(i).

    (b)  If a local entity transfers title to property as provided in Subsection (2)(a) or sells property it has received from a tax sale or foreclosure, the selling price may not be less than the amount sufficient to reimburse the local entity for all amounts the local entity paid with respect to an assessment on the property, including an amount sufficient to reimburse the guaranty fund or reserve fund, as the case may be, for all amounts paid from the fund for delinquent assessments or installments of assessments relating to the property, plus interest, penalties, and costs.

    (c)  Each local entity that sells property it has received from a tax sale or foreclosure shall place the money it receives from the sale into the guaranty fund, reserve fund, or other local entity fund, as the case may be, to the extent of full reimbursement as required in this section.

    Amended by Chapter 445, 2015 General Session

      Previous section
    Next section  
     Part 5 Contents

    LawServer is used by

    New York Times, IRS, USDA, UCLA, DOT