State Codes and Statutes
Statutes > Utah > Title-53a > Chapter-28 > 53a-28-40153A-28-401. Backup liquidity arrangements -- Issuance of notes.
(1) (a) If, at the time the state is required to make a debt service payment under itsguaranty on behalf of a board, sufficient monies of the state are not on hand and available for thatpurpose, the state treasurer may:
(i) seek a loan from the Permanent School Fund sufficient to make the required payment;or
(ii) issue state debt as provided in Subsection (2).
(b) Nothing in this Subsection (1) requires the Permanent School Fund to lend monies tothe state treasurer.
(2) (a) The state treasurer may issue state debt in the form of general obligation notes tomeet its obligations under this chapter.
(b) The amount of notes issued may not exceed the amount necessary to make paymenton all bonds with respect to which the notes are issued plus all costs of issuance, sale, anddelivery of the notes, rounded up to the nearest natural multiple of $5,000.
(c) Each series of notes issued may not mature later than 18 months from the date thenotes are issued.
(d) Notes issued may be refunded using the procedures set forth in this chapter for theissuance of notes, in an amount not more than the amount necessary to pay principal of andaccrued but unpaid interest on any refunded notes plus all costs of issuance, sale, and delivery ofthe refunding notes, rounded up to the nearest natural multiple of $5,000.
(e) Each series of refunding notes may not mature later than 18 months from the date therefunding notes are issued.
(3) (a) Before issuing or selling any general obligation note to other than a state fund oraccount, the state treasurer shall:
(i) prepare a written plan of financing; and
(ii) file it with the governor.
(b) The plan of financing shall provide for:
(i) the terms and conditions under which the notes will be issued, sold, and delivered;
(ii) the taxes or revenues to be anticipated;
(iii) the maximum amount of notes that may be outstanding at any one time under theplan of financing;
(iv) the sources of payment of the notes;
(v) the rate or rates of interest, if any, on the notes or a method, formula, or index underwhich the interest rate or rates on the notes may be determined during the time the notes areoutstanding; and
(vi) all other details relating to the issuance, sale, and delivery of the notes.
(c) In identifying the taxes or revenues to be anticipated and the sources of payment ofthe notes in the financing plan, the state treasurer may include:
(i) the taxes authorized by Section 53A-28-402;
(ii) the intercepted revenues authorized by Section 53A-28-302;
(iii) the proceeds of refunding notes; or
(iv) any combination of Subsections (3)(c)(i), (ii), and (iii).
(d) The state treasurer may include in the plan of financing the terms and conditions ofarrangements entered into by the state treasurer on behalf of the state with financial and otherinstitutions for letters of credit, standby letters of credit, reimbursement agreements, and
remarketing, indexing, and tender agent agreements to secure the notes, including payment fromany legally available source of fees, charges, or other amounts coming due under the agreementsentered into by the state treasurer.
(e) When issuing the notes, the state treasurer shall issue an order setting forth theinterest, form, manner of execution, payment, manner of sale, prices at, above, or below facevalue, and all details of issuance of the notes.
(f) The order and the details set forth in the order shall conform with any applicable planof financing and with this chapter.
(g) (i) Each note shall recite that it is a valid obligation of the state and that the full faith,credit, and resources of the state are pledged for the payment of the principal of and interest onthe note from the taxes or revenues identified in accordance with its terms and the constitutionand laws of Utah.
(ii) These general obligation notes do not constitute debt of the state for the purposes ofthe 1.5% debt limitation of the Utah Constitution, Article XIV, Section 1.
(h) Immediately upon the completion of any sale of notes, the state treasurer shall:
(i) make a verified return of the sale to the state auditor, specifying the amount of notessold, the persons to whom the notes were sold, and the price, terms, and conditions of the sale;and
(ii) credit the proceeds of sale, other than accrued interest and amounts required to paycosts of issuance of the notes, to the General Fund to be applied to the purpose for which thenotes were issued.
Amended by Chapter 306, 2007 General Session
