Utah § 11-42-606 Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.

Utah Statutes

§ 11-42-606 — Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.

Utah·Title 11 Cities, Counties, and Local Taxing Units·Ch. 11-42 Assessment Area Act·Part 11-42-6 Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds

(1)Assessment bonds are not a general obligation of the local entity that issues them.

(2)A local entity that issues assessment bonds:

(2)(a) may not be held liable for payment of the bonds except to the extent of:

(2)(a)(i) funds created and received from assessments against which the bonds are issued;

(2)(a)(ii) improvement revenues; and

(2)(a)(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and

(2)(b) is responsible for:

(2)(b)(i) the lawful levy of all assessments;

(2)(b)(ii) the collection and application of improvement revenues, as provided in this chapter;

(2)(b)(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and

(2)(b)(iv) the faithful accounting, collection, settlemen

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(1) Assessment bonds are not a general obligation of the local entity that issues them.
(2) A local entity that issues assessment bonds:

(2)(a) may not be held liable for payment of the bonds except to the extent of:
(2)(a)(i) funds created and received from assessments against which the bonds are issued;
(2)(a)(ii) improvement revenues; and
(2)(a)(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and
(2)(b) is responsible for:
(2)(b)(i) the lawful levy of all assessments;
(2)(b)(ii) the collection and application of improvement revenues, as provided in this chapter;
(2)(b)(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and
(2)(b)(iv) the faithful accounting, collection, settlement, and payment of:

(2)(b)(iv)(A) assessments and improvement revenues; and
(2)(b)(iv)(B) money in a guaranty fund or, if applicable, a reserve fund.
(3) If a local entity illegally assesses property that is exempt from assessment, the local entity:

(3)(a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and
(3)(b) shall pay the amount for which it is liable under Subsection (3)(a) from the local entity's general fund or other legally available money.

Utah § 11-42-606 (Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.