Utah Code 53G-5-608. Bond issuance

53G-5-608. Bond issuance.

(1)

Terms Used In Utah Code 53G-5-608

Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
Authority: means the Utah Charter School Finance Authority created by this part. See Utah Code 53G-5-601
Charter school: means a school created under this chapter. See Utah Code 53G-5-601
Credit enhancement program: means the Charter School Credit Enhancement Program established in Section 53G-5-606. See Utah Code 53G-5-601
Debt service reserve fund: means the reserve fund created or established by, or for the benefit of, a qualifying charter school for the purpose of paying principal of and interest on bonds issued under the credit enhancement program as the payments become due and other money of the qualifying charter school is not available to make the payments. See Utah Code 53G-5-601
Debt service reserve fund requirement: means , as of a particular date of computation, and with respect to a particular issue of bonds, the amount required to be on deposit in the debt service reserve fund, which amount:

(a)	may be a sum certain or as set forth in a formula; and

(b)

may not be less than the maximum annual debt service requirement for the related bonds. See Utah Code 53G-5-601

Qualifying charter school: means a charter school that:

(a)	meets standards adopted by the authority for participation in the credit enhancement program; and

(b)	is designated by the authority as a qualifying charter school for purposes of participation in the credit enhancement program. See Utah Code 53G-5-601 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 may not alter, impair, or limit the rights of bondholders or persons contracting with a qualifying charter school until the bonds, including interest and other contractual obligations, are fully met and discharged.

(b)	Nothing in this part precludes an alteration, impairment, or limitation if provision is made by law for the protection of bondholders or persons entering into contracts with a qualifying charter school.

(2)	The authority may require a qualifying charter school to vest in the authority the right to enforce any covenant made to secure bonds issued under the credit enhancement program by making appropriate provisions in the indenture related to the qualifying charter school’s bonds.

(3)

The authority may require a qualifying charter school to make covenants and agreements in indentures or in a reimbursement agreement to protect the interests of the state and to secure repayment to the state of any money received by the qualifying charter school from an appropriation to restore amounts deposited in the qualifying charter school’s debt service reserve fund to the debt service reserve fund requirement.

(4)	The authority may charge a fee to administer the issuance of bonds for a qualifying charter school.

Renumbered and Amended by Chapter 3, 2018 General Session

Previous section

Next section

Part 6 Contents