11-42a-205. Installment payment of assessments.
| (1) |
In an energy assessment resolution or ordinance that a local entity adopts under Subsection 11-42a-201(1)(a), the governing body may provide that some or all of the assessment be paid in installments:
Terms Used In Utah Code 11-42a-205- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Trustee: A person or institution holding and administering property in trust.
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
| (a) |
in accordance with the resolution or ordinance; and |
| (b) |
over a period not to exceed 30 years from the effective date of the resolution or ordinance. |
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| (2) |
| (a) |
Each governing body that adopts an energy assessment resolution or ordinance that provides for the assessment to be paid in installments shall ensure that the resolution or ordinance provides that the unpaid balance of the assessment bears interest at a fixed rate, a variable rate, or a combination of fixed and variable rates, as determined by the governing body, from the effective date of the resolution or ordinance or another date that the resolution or ordinance specifies. |
| (b) |
Each governing body that adopts an energy assessment resolution or ordinance that provides for the unpaid balance of the assessment to bear interest at a variable rate shall ensure that the resolution or ordinance specifies:
| (i) |
the basis upon which the rate is to be determined from time to time; |
| (ii) |
the manner in which and schedule upon which the rate is to be adjusted; and |
| (iii) |
a maximum rate that the assessment may bear. |
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| (3) |
Interest payable on assessments may include:
| (a) |
interest on energy assessment bonds; |
| (b) |
ongoing costs that the local entity incurs for administration of the energy assessment area; |
| (c) |
a trustee‘s fees and expenses; and |
| (d) |
any costs that the local entity incurs with respect to:
| (i) |
securing a letter of credit or other instrument to secure payment or repurchase of bonds; or |
| (ii) |
retaining a marketing agent or an indexing agent. |
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| (4) |
A property owner shall pay interest imposed in an energy assessment resolution or ordinance annually or at more frequent intervals as the resolution or ordinance provides, in addition to the amount of each installment. |
| (5) |
| (a) |
At any time, a property owner may prepay some or all of the assessment levied against the owner’s property. |
| (b) |
A local entity may require that a prepayment of an installment include:
| (i) |
an amount equal to the interest that would accrue on the assessment to the next date on which interest is payable on a bond issued or a loan made in anticipation of the collection of the assessment; and |
| (ii) |
the amount necessary, as determined by the governing body or the officer that the governing body designates, to ensure the availability of money to pay:
| (A) |
interest that becomes due and payable on a bond or loan described in Subsection (5)(b)(i); and |
| (B) |
any premiums that become payable on a loan that is prepaid or on a bond that is called for redemption in order to use the money from the prepaid assessment installment. |
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Amended by Chapter 431, 2018 General Session
