State Codes and Statutes

Statutes > Utah > Title-11 > Chapter-32 > 11-32-7

11-32-7. Bond principal and interest -- Security agreements -- Trustee.
(1) The principal of and interest on any bonds issued under this chapter:
(a) shall be secured by a pledge and assignment of the revenues received by the financingauthority under the assignment agreement with respect to the delinquent tax receivablespurchased with the proceeds of the sale of these bonds;
(b) may be secured by a pledge and security interest in the assignment agreement; and
(c) may be secured by amounts held in reserve funds, letters of credit, bond insurance,surety bonds, or by such other security devices with respect to the delinquent tax receivablesdeemed most advantageous by the authority.
(2) The proceedings under which the bonds are authorized to be issued under this chapterand any security agreement given to secure the bonds may contain any agreements and provisionscustomarily contained in instruments securing bonds, including provisions respecting:
(a) the collection of the delinquent taxes covered by these proceedings or any securityagreement;
(b) the terms to be incorporated in the assignment agreement with respect to thedelinquent tax receivables;
(c) the creation and maintenance of reserve funds from the proceeds of sale of bonds orfrom the collection of the delinquent taxes;
(d) the rights and remedies available to the holders of bonds or to the trustee in the eventof a default, as the board of trustees of the authority may determine in accordance with thischapter.
(3) The security agreements, trust indentures, or other security devices shall provide thatfollowing the exhaustion of all legal means of collection of the delinquent tax receivables nojudgment may be entered against the authority or the county or any participant members or thestate of Utah or any of its political subdivisions.
(4) The proceedings authorizing bonds under this chapter, and any security agreementsecuring these bonds, may provide that upon default in the payment of the principal of or intereston the bonds or in the performance of any covenant or agreement contained in the proceedings orsecurity agreement, the payment or performance may be enforced by the appointment of areceiver for the delinquent tax receivables with power to compel the county to use the statutorymeans it has to collect the delinquent tax receivables and apply the revenues in accordance withthese proceedings or the security agreement.
(5) No breach of a security agreement, covenant, or other agreement may impose anygeneral obligation or liability upon, nor a charge against, the county or any participant member,nor the general credit or taxing power of this state or any of its political subdivisions.
(6) The proceedings authorizing the issuance of bonds may provide for the appointmentof a trustee, which may be a trust company or bank having trust powers located in or outside ofthis state.

Amended by Chapter 378, 2010 General Session