State Codes and Statutes
Statutes > Utah > Title-63b > Chapter-01b > 63b-1b-30263B-1b-302. Marketing plan and related agreements -- Use of proceeds ofliquidation of agency bonds -- Report to Division of Finance -- Special funds -- Limitationon liability.
(1) (a) Before the liquidation of any agency bonds pursuant to the request of anauthorizing agency as provided in Section 63B-1b-301, the state treasurer shall provide a writtenmarketing plan to the governor or the governor's designee and the appropriate authorizing agencyor agencies for written approval.
(b) The marketing plan may provide for:
(i) the terms and conditions under which the agency bonds may be sold, assigned, orliquidated by the state treasurer;
(ii) the particular agency bonds to be sold, assigned, or liquidated, or a maximum paramount of agency bonds to be sold, assigned, or liquidated;
(iii) the price or a range of prices of the agency bonds to be sold, assigned, or liquidated,which may be at, above, or below par, as the state treasurer determines in the marketing plan;
(iv) the terms and conditions of agreements entered into by the state treasurer on behalfof the state with financial and other institutions for financial advisory services, trustee services,insurance, letters of credit, reimbursement agreements, tender agreements, put agreements,repurchase agreements, and indexing and tender agent agreements to facilitate the marketing planor to secure or provide liquidity to support any agreement, obligation, or contract entered into bythe state treasurer on behalf of the state in connection with the sale, assignment, or liquidation ofthe agency bonds and any repurchase, remarketing, or other liquidation of the agency bonds andany insurance, repurchase, remarketing, tender, put, letter of credit, or agreement, obligation, orcontract entered in connection with them, including payment of fees, charges, or other amountscoming due under agreements entered into with financial or other institutions by the statetreasurer, from the proceeds of any sale, assignment, or other liquidation of agency bonds, andfrom any investment earnings on such proceeds, and no other state money may be used for thispurpose;
(v) the application of the proceeds received from the sale, assignment, or liquidation ofagency bonds, and any investment earnings on them; and
(vi) all other details relating to the sale, assignment, or liquidation of agency bonds andany related, attached, or accompanying insurance, tender, put, repurchase, remarketing, letter ofcredit, or other agreement, obligation, or contract deemed necessary or appropriate by the statetreasurer.
(c) The state treasurer, on behalf of the state, may enter into the agreements contemplatedin the marketing plan.
(2) (a) After the payment of, or provision for payment of, the fees, charges, or otheramounts pursuant to Subsection (1), the state treasurer shall deliver the proceeds of the sale,assignment, or other liquidation of agency bonds under this section to the appropriate authorizingagency to be applied as authorized by the law creating or authorizing the loan or grant program ofthe authorizing agency.
(b) (i) The marketing plan may provide that if any agreement, obligation, or contractentered into by the state treasurer on behalf of the state with respect to the sale, repurchase,remarketing, tender, put, assignment, or other liquidation of the agency bonds remainsoutstanding under the marketing plan, the proceeds, and investment earnings on them, may bepledged, escrowed, held in trust, or otherwise held in reserve by the state treasurer to secure these
agreements, obligations, or contracts of the state treasurer entered into on behalf of the state.
(ii) Any obligations of the state treasurer entered into on behalf of the state underSubsection (2)(b)(i) shall be limited solely to those proceeds and the investment earnings onthem.
(c) No holder or beneficiary of any put, tender, repurchase, remarketing, or other similarrights under such agreements, obligations, or contracts of the state treasurer entered into onbehalf of the state has any rights against the state, the state treasurer or any state agency, or fundsof the state, the state treasurer, or any state agency, other than those expressly set forth in theagreement or contract embodying those rights, consistent with the marketing plan and thelimitation set forth in this Subsection (2).
(3) (a) (i) The state treasurer may establish more than one marketing plan under thissection.
(ii) Agency bonds may be combined in any combination and sold, pledged, assigned, orotherwise liquidated in any amounts, at any time, and from time to time as provided in theapplicable marketing plan.
(b) The state treasurer may, by order, set forth the sale price, form, manner of execution,payment, manner of sale, assignment, or other liquidation, and all details of agreements orcontracts entered into in connection with them, including the application of any proceeds and theinvestment earnings on them, consistent with the marketing plan and this section.
(c) The state treasurer shall make a verified return to the Division of Financeimmediately upon completion of each transaction of:
(i) the amount of agency bonds involved;
(ii) the amounts received in each transaction entered into under this section; and
(iii) a brief description of any pledge or other restriction on the proceeds of thetransaction or the investment earnings on the proceeds.
(4) The state treasurer may:
(a) create any funds necessary to carry out the purposes of this section;
(b) invest all money held in those funds in accordance with Title 51, Chapter 7, StateMoney Management Act, and in accordance with any agreement of the state, pursuant to themarketing plan, with respect to the investment and application of the money; and
(c) invest money held in the funds in obligations of any state, territory, or possession ofthe United States, or of any of the political subdivisions of any state, territory, or possession ofthe United States, or of the District of Columbia, described in Section 103, Internal RevenueCode of 1986.
(5) The limitations contained in this section with respect to the liability of the state or itsagencies may not be construed to limit or alter the obligations of political subdivisions on thebonds in the hands of the holders of them in any manner.
Renumbered and Amended by Chapter 382, 2008 General Session
