11-42a-302. Assignment of energy assessment lien.
| (1) |
Terms Used In Utah Code 11-42a-302- Administrator: includes "executor" when the subject matter justifies the use. See Utah Code 68-3-12.5
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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 both real and personal property. See Utah Code 68-3-12.5
- 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) |
In lieu of issuing energy assessment bonds to finance the costs of improvements under this chapter, a third-party lender may provide financing to a property owner to finance, refinance, or reimburse the costs of improvements. |
| (b) |
A local entity, through the local entity’s executive or administrator, as applicable, may assign to the third-party lender described in Subsection (1)(a) the local entity’s rights in the energy assessment lien by entering into a written agreement with the third-party lender. |
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| (2) |
| (a) |
If a local entity assigns the local entity’s rights in an energy assessment lien to a third-party lender under Subsection (1), the local entity’s executive or administrator, as applicable, may authorize the designation of the energy assessment area and the levying of the assessment in lieu of the adoption of an energy assessment resolution or ordinance by the governing body of the local entity under Section 11-42a-201. |
| (b) |
If a local entity assigns the local entity’s rights under Subsection (1)(b), the local entity shall ensure that the written agreement with the third-party lender:
| (i) |
includes the information required to be included within an energy assessment resolution or ordinance described in Section 11-42a-201; |
| (iii) |
requires the third-party lender to be subject to an audit by the state auditor regarding the assigned energy assessment lien; |
| (iv) |
requires the third-party lender to submit to the local entity monthly reports, including information regarding the payments the third-party lender receives; and |
| (v) |
insulates the local entity from liability for the actions of the third-party lender. |
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| (3) |
If a local entity assigns an energy assessment lien to a third-party lender, in accordance with Subsection (1), except as provided in Subsection 11-42a-303(2), the third-party lender has and possesses the same powers and rights at law or in equity to enforce the lien that the local entity creating the lien would have if the local entity did not assign the lien, including the rights and powers of the local entity under Sections 11-42a-303 and 11-42a-304. |
| (4) |
| (a) |
Any financing in connection with the assignment of an energy assessment lien to a third-party lender under this section is not:
| (i) |
an obligation of the local entity that assigns the lien; or |
| (ii) |
a charge against the general credit or taxing powers of the local entity that assigns the lien. |
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| (b) |
A local entity may not obligate itself to pay any assessment levied or bond issued under this chapter. |
| (c) |
The assessments and the property upon which the energy assessment lien is recorded are the sole securities for the assignment of an energy assessment lien. |
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Enacted by Chapter 470, 2017 General Session
