§ 17D-2-403 — Provisions that a lease agreement may contain.

Utah § 17D-2-403

• Jurisdiction: Utah
• Title 17D: Limited Purpose Local Government Entities - Other Entities
• Ch. 17D-2: Local Building Authority Act
• Part 17D-2-4: Local Building Authority Lease Agreements

Text

(1) A lease agreement between a local building authority and its creating local entity may:

(1)(a) provide that the creating local entity, as part of the lease payments for the leased property:
(1)(a)(i) pay all taxes and assessments levied against or on account of the leased property or rentals from it;
(1)(a)(ii) maintain insurance on the leased property for the benefit of the local building authority and the holders of the local building authority's bonds; and
(1)(a)(iii) assume all responsibility for any repair, replacement, alteration, or improvement to the leased property during the term of the lease agreement; and
(1)(b) authorize the local entity to sublease all or specified portions of a project to:
(1)(b)(i) the state;
(1)(b)(ii) another local entity; or
(1)(b)(iii) a private party, including a nonprofit corporation, if the local building authority or local entity:

(1)(b)(iii)(A) intends to own the project throughout the useful life of the project; and
(1)(b)(iii)(B) determines that the local building authority or local entity's ownership of the project furthers a legitimate public purpose.
(2) A local entity that subleases some or all of a project under Subsection (1)(b) continues to be responsible for lease payments due under the lease agreement with the local building authority.

Legislative History

Enacted by Chapter 360, 2008 General Session