11-58-705. Obligee rights — Board may confer other rights.
(1)
In addition to all other rights that are conferred on an obligee of a bond issued by the authority under this part and subject to contractual restrictions binding on the obligee, an obligee may:
Contract: A legal written agreement that becomes binding when signed.
Development: means :
(a)
the demolition, construction, reconstruction, modification, expansion, or improvement of a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or other facility, including public infrastructure and improvements; and
(b)
the planning of, arranging for, or participation in any of the activities listed in Subsection (7)(a). See Utah Code 11-58-102
Development project: means a project for the development of land within a project area. See Utah Code 11-58-102
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(a)
by mandamus, suit, action, or other proceeding, compel an authority and its board, officers, agents, or employees to perform every term, provision, and covenant contained in any contract of the authority with or for the benefit of the obligee, and require the authority to carry out the covenants and agreements of the authority and to fulfill all duties imposed on the authority by this part; and
(b)
by suit, action, or proceeding in equity, enjoin any acts or things that may be unlawful or violate the rights of the obligee.
(2)
(a)
In a board resolution authorizing the issuance of bonds or in a trust indenture, mortgage, lease, or other contract, the board may confer upon an obligee holding or representing a specified amount in bonds, the rights described in Subsection (2)(b), to accrue upon the happening of an event or default prescribed in the resolution, indenture, mortgage, lease, or other contract, and to be exercised by suit, action, or proceeding in any court of competent jurisdiction.
(b)
(i)
The rights that the board may confer under Subsection (2)(a) are the rights to:
(A)
cause possession of all or part of a development project to be surrendered to an obligee;
(B)
obtain the appointment of a receiver of all or part of an authority’s development project and of the rents and profits from it; and
(C)
require the authority and its board and employees to account as if the authority and the board and employees were the trustees of an express trust.
(ii)
If a receiver is appointed through the exercise of a right granted under Subsection (2)(b)(i)(B), the receiver:
(A)
may enter and take possession of the development project or any part of it, operate and maintain it, and collect and receive all fees, rents, revenues, or other charges arising from it after the receiver’s appointment; and
(B)
shall keep money collected as receiver for the authority in separate accounts and apply it pursuant to the authority obligations as the court directs.
