11-42a-402. Energy assessment bond not a local entity’s general obligation — Liability and responsibility of a local entity issuing an energy assessment bond — No state liability.
| (1) |
Terms Used In Utah Code 11-42a-402- 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
- 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.
- 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) |
An energy assessment bond that a local entity issues under this chapter:
| (i) |
is a limited obligation of the local entity; and |
| (ii) |
does not constitute nor give rise to:
| (A) |
a general obligation or liability of the local entity or the state; or |
| (B) |
a charge against the general credit or taxing powers of the local entity or the state. |
|
|
| (b) |
The local entity shall ensure that the limitation described in Subsection (1)(a) is plainly stated upon the face of the bond. |
| (c) |
The assessments and the property upon which the energy assessment lien is recorded are the sole securities for an energy assessment bond. |
|
| (2) |
| (a) |
A local entity that issues an energy assessment bond is not liable and may not obligate itself for payment of the bond, except for a fund that the local entity creates and receives from assessments against which the bond is issued. |
| (b) |
Unless otherwise provided in this chapter, a local entity that issues an energy assessment bond is responsible for:
| (i) |
the lawful levy of all assessments; and |
| (ii) |
the faithful accounting, collection, settlement, and payment of assessments. |
|
|
Enacted by Chapter 470, 2017 General Session
