Utah Code 17D-2-506. Other entities not responsible for local building authority bonds or breach of mortgage and other obligations

(1)

Nothing in this part may be construed to require:

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
Creating local entity: means the local entity that creates or created the local building authority. See Utah Code 17D-2-102
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}
Local entity: means a county, city, town, school district, special district, or special service district. See Utah Code 17D-2-102
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
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.
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)	the state or any political subdivision of the state to pay a bond issued under this part;

(b)	the state or, except the creating local entity, any political subdivision of the state to pay any rent or lease payment due to a local building authority under the terms of a lease agreement; or

(c)

the creating local entity to appropriate money to pay:

(i)	principal of or interest on bonds issued by a local building authority; or

(ii)	the lease payments under a lease agreement with the local building authority.

(2)

A breach of a mortgage or a covenant or agreement in a mortgage may not impose a general obligation or liability upon or a charge against:

(a)	the creating local entity; or

(b)	the general credit or taxing power of the state or any political subdivision of the state.

Amended by Chapter 356, 2009 General Session