State Codes and Statutes
Statutes > Utah > Title-11 > Chapter-42 > 11-42-60511-42-605. Local entity may authorize the issuance of assessment bonds -- Limit onamount of bonds -- Features of assessment bonds.
(1) After the 25-day prepayment period under Subsection 11-42-411(6) has passed or, ifthe 25-day prepayment period is waived under Section 11-42-104, after the assessment resolutionor ordinance takes effect, a local entity may authorize the issuance of bonds to pay the costs ofimprovements in an assessment area, and other related costs, against the funds that the localentity will receive because of an assessment in an assessment area.
(2) The aggregate principal amount of bonds authorized under Subsection (1) may notexceed the unpaid balance of assessments at the end of the 25-day prepayment period underSubsection 11-42-411(6).
(3) Assessment bonds issued under this section:
(a) are fully negotiable for all purposes;
(b) shall mature at a time that does not exceed the period that installments of assessmentsin the assessment area are due and payable, plus one year;
(c) shall bear interest at the lowest rate or rates reasonably obtainable;
(d) may not be dated earlier than the effective date of the assessment ordinance;
(e) shall be payable at the place, shall be in the form, and shall be sold in the manner andwith the details that are provided in the resolution authorizing the issuance of the bonds;
(f) shall be issued in registered form as provided in Title 15, Chapter 7, Registered PublicObligations Act; and
(g) provide that interest be paid semiannually, annually, or at another interval asspecified by the governing body.
(4) (a) A local entity may:
(i) (A) provide that assessment bonds be callable for redemption before maturity; and
(B) fix the terms and conditions of redemption, including the notice to be given and anypremium to be paid;
(ii) subject to Subsection (4)(b), require assessment bonds to bear interest at a fixed orvariable rate, or a combination of fixed and variable rates;
(iii) specify terms and conditions under which:
(A) assessment bonds bearing interest at a variable interest rate may be converted to bearinterest at a fixed interest rate; and
(B) the local entity agrees to repurchase the bonds;
(iv) engage a remarketing agent and indexing agent, subject to the terms and conditionsthat the governing body agrees to; and
(v) include all costs associated with assessment bonds, including any costs resulting fromany of the actions the local entity is authorized to take under this section, in an assessment leviedunder Section 11-42-401.
(b) If assessment bonds carry a variable interest rate, the local entity shall specify:
(i) the basis upon which the variable rate is to be determined over the life of the bonds;
(ii) the manner in which and schedule upon which the rate is to be adjusted; and
(iii) a maximum rate that the bonds may carry.
(5) (a) Nothing in this part may be construed to authorize the issuance of assessmentbonds to pay for the cost of ordinary repairs to pavement, sewers, drains, curbing, gutters, orsidewalks.
(b) Notwithstanding Subsection (5)(a), a local entity may issue assessment bonds to pay
for extraordinary repairs to pavement, sewers, drains, curbing, gutters, or sidewalk.
(c) A local entity's governing body may define by resolution or ordinance whatconstitutes ordinary repairs and extraordinary repairs for purposes of this Subsection (5).
(d) Nothing in this Subsection (5) may be construed to limit a local entity from levyingan assessment within an assessment area to pay operation and maintenance costs as described ina notice under Section 11-42-402.
(6) If a local entity has issued interim warrants under Section 11-42-601 or bondanticipation notes under Section 11-42-602 in anticipation of assessment bonds that the localentity issues under this part, the local entity shall provide for the retirement of the interimwarrants or bond anticipation notes contemporaneously with the issuance of the assessmentbonds.
Amended by Chapter 246, 2009 General Session
