11-65-505. 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 lake authority under this part, and subject to contractual restrictions binding on the obligee, an obligee may:
Terms Used In Utah Code 11-65-505- Board: means the lake authority's governing body, created in Section 11-65-301. See Utah Code 11-65-101
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Lake authority: means the Utah Lake Authority, created in Section 11-65-201. See Utah Code 11-65-101
- 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 the lake authority and the lake authority’s board, officers, agents, or employees to perform every term, provision, and covenant contained in any contract of the lake authority with or for the benefit of the obligee, and require the lake authority to carry out the covenants and agreements of the lake authority and to fulfill all duties imposed on the lake 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. |
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| (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 a lake authority’s development project and of the rents and profits from it; and |
| (C) |
require the lake authority and the lake authority’s board and employees to account as if the lake authority and the board and employees were the trustees of an express trust. |
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| (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 the development project, operate and maintain the development project, and collect and receive all fees, rents, revenues, or other charges arising from the development project after the receiver’s appointment; and |
| (B) |
shall keep money collected as receiver for the lake authority in separate accounts and apply the money pursuant to the lake authority obligations as the court directs. |
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Enacted by Chapter 59, 2022 General Session
