(1)  The principal of and interest on bonds that a local building authority issues under this part:

Terms Used In Utah Code 17D-2-505

  • Bond: includes a bond, note, or other instrument issued under this chapter evidencing an indebtedness of a local building authority. See Utah Code 17D-2-102
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • 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.
  • Mortgage: means any instrument under which property may be encumbered as security for an obligation, including a mortgage, trust deed, indenture, pledge, assignment, security agreement, and financing statement. See Utah Code 17D-2-102
  • Project: means an improvement, facility, property, or appurtenance to property that a local entity is permitted under law to own or acquire, whether located inside or outside the local entity's boundary, including:
(a) a public building or other structure of any kind; and
(b) a joint or partial interest in the improvement, facility, property, or appurtenance to property. See Utah Code 17D-2-102
  • Trustee: A person or institution holding and administering property in trust.
  • (a)  shall be secured by a pledge and assignment of the revenue that the local building authority receives under its lease agreement with respect to the project that was financed with the bond proceeds;

    (b)  may be secured by:

    (i)  a mortgage covering some or all of the project;

    (ii)  a pledge and assignment of the lease agreement for that project;

    (iii)  money held in a reserve fund; and

    (iv)  any other security device with respect to the project that the local building authority considers most advantageous.

    (2)  A proceeding under which a mortgage is given to secure the bonds of a local building authority may contain any agreement or provision listed in Section 17D-2-503 that could be contained in a proceeding under which a local building authority is authorized to issue bonds under this part.

    (3)  A mortgage to secure bonds issued by a local building authority under this part may provide that:

    (a)  upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law; and

    (b)  the trustee or holder of any bond secured by the mortgage may become the purchaser at a foreclosure sale, if the trustee or holder is the highest bidder.

    Enacted by Chapter 360, 2008 General Session