Utah § 53G-3-402 Transfer of property to new school district -- Rights and obligations of new local school board -- Outstanding indebtedness -- Special tax.

Utah Statutes

§ 53G-3-402 — Transfer of property to new school district -- Rights and obligations of new local school board -- Outstanding indebtedness -- Special tax.

Utah § 53G-3-402

Title 53GPublic Education System -- Local Administration

Ch. 53G-3School District Creation and Change

Part 53G-3-4Consolidating School Districts

This text of Utah § 53G-3-402 (Transfer of property to new school district -- Rights and obligations of new local school board -- Outstanding indebtedness -- Special tax.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 53G-3-402 (2026).

Text

(1)On July 1 following the approval of the creation of a new school district under Section 53G-3-401, the local school boards of the former districts shall convey and deliver all school property to the local school board of the new district. Title vests in the new local school board. All rights, claims, and causes of action to or for the property, for the use or the income from the property, for conversion, disposition, or withholding of the property, or for any damage or injury to the property vest at once in the new local school board.

(2)The new local school board may bring and maintain actions to recover, protect, and preserve the property and rights of the district schools and to enforce contracts.

(3)The new local school board shall assume and be liable for all outstanding debts

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(1) On July 1 following the approval of the creation of a new school district under Section 53G-3-401, the local school boards of the former districts shall convey and deliver all school property to the local school board of the new district. Title vests in the new local school board. All rights, claims, and causes of action to or for the property, for the use or the income from the property, for conversion, disposition, or withholding of the property, or for any damage or injury to the property vest at once in the new local school board.
(2) The new local school board may bring and maintain actions to recover, protect, and preserve the property and rights of the district schools and to enforce contracts.
(3) The new local school board shall assume and be liable for all outstanding debts and obligations of each of the former school districts.
(4) All of the bonded indebtedness, outstanding debts, and obligations of a former district, which cannot be reasonably paid from the assets of the former district, shall be paid by a special tax levied by the new local school board as needed. The tax shall be levied upon the property within the former district which was liable for the indebtedness at the time of consolidation. If bonds are approved in the new district under Section 53G-4-603, the special tax shall be discontinued and the bonded indebtedness paid as any other bonded indebtedness of the new district.
(5) Bonded indebtedness of a former district which has been refunded shall be paid in the same manner as that which the new district assumes under Section 53G-4-602.
(6) State funds received by the new district under Section 53F-3-202 may be applied toward the payment of outstanding bonded indebtedness of a former district in the same proportion as the bonded indebtedness of the territory within the former district bears to the total bonded indebtedness of the districts combined.