17C-1-507. 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 an agency 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.
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.
Project area: means the geographic area described in a project area plan within which the project area development described in the project area plan takes place or is proposed to take place. See Utah Code 17C-1-102
Project area development: means activity within a project area that, as determined by the board, encourages, promotes, or provides development or redevelopment for the purpose of implementing a project area plan, including:
(a)
promoting, creating, or retaining public or private jobs within the state or a community;
(b)
providing office, manufacturing, warehousing, distribution, parking, or other facilities or improvements;
(c)
planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating environmental issues;
(d)
providing residential, commercial, industrial, public, or other structures or spaces, including recreational and other facilities incidental or appurtenant to the structures or spaces;
(e)
altering, improving, modernizing, demolishing, reconstructing, or rehabilitating existing structures;
(f)
providing open space, including streets or other public grounds or space around buildings;
(g)
providing public or private buildings, infrastructure, structures, or improvements;
(h)
relocating a business;
(i)
improving public or private recreation areas or other public grounds;
(j)
eliminating a development impediment or the causes of a development impediment;
(k)
redevelopment as defined under the law in effect before May 1, 2006; or
(l)
any activity described in this Subsection (48) outside of a project area that the board determines to be a benefit to the project area. See Utah Code 17C-1-102
(a)
by mandamus, suit, action, or other proceeding, compel an agency and the agency’s board, officers, agents, or employees to perform every term, provision, and covenant contained in any contract of the agency with or for the benefit of the obligee, and require the agency to carry out the covenants and agreements of the agency and to fulfill all duties imposed on the agency by this part; and
(b)
by suit, action, or other proceeding, 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 a bond or in a trust indenture, mortgage, lease, or other contract, a 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 the project area development to be surrendered to an obligee;
(B)
obtain the appointment of a receiver of all or part of an agency’s project area development and of the rents and profits from the project area development; and
(C)
require the agency and the board and employees to account as if the agency 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 project area development or any part of the project area development, operate and maintain the project area development, and collect and receive all fees, rents, revenues, or other charges arising from the project area development after the receiver’s appointment; and
(B)
shall keep money collected as receiver for the agency in a separate account and apply the money pursuant to the agency obligations as the court directs.
