2006 Utah Code - 17A-2-828 — Action to test validity of contracts, bonds, and other contract obligations or indebtedness.

     17A-2-828.   Action to test validity of contracts, bonds, and other contract obligations or indebtedness.
     The board of trustees may, within 90 days from the date of the election authorizing the issuance of bonds, the making of any contract, the incurring of any contract obligation or indebtedness, cause to be brought in the name of the district an action in the district court of the county in which the district, or the greater portion of the property subject to taxation by the district, according to the most recent assessment, is located, to determine the validity of any such bonds, contract, contract obligation, or indebtedness, and the sufficiency of the provision for the collection of an annual tax sufficient to pay the interest on such bonded or other indebtedness and the principal thereof as such interest and principal shall fall due and/or to constitute a sinking fund for the payment of principal on or before maturity. Such action shall be in the nature of a proceeding in rem, and jurisdiction of all parties interested may be had by publication of summons for at least once a week for three weeks in some paper of general circulation published in the county where the action is pending, such paper to be designated by the court having jurisdiction of the proceedings. Jurisdiction shall be complete within ten days after the full publication of such summons in the manner herein provided. Anyone interested may at any time before the expiration of the ten days appear and by proper proceedings contest the validity of such bonds, contract or contract obligation, or indebtedness and the sufficiency of the provisions for the collection of the annual tax. Such action shall be speedily tried and judgment rendered declaring such bonds, contract or contract obligation, or indebtedness to be valid or invalid, and declaring the provision for the collection of an annual tax for those purposes, to be sufficient or insufficient. Either party may have the right to appeal to the Supreme Court at any time within 30 days after the rendition of such judgment, which appeal must be heard and determined within three months from the time of taking such appeal. After the expiration of 90 days from the date of the election authorizing the making of such contract or contracts, the issuance of bonds, or the incurring of other obligation or indebtedness, no action may be brought to contest or question the validity of the bonds, contract, obligation, or indebtedness and proceedings in relation thereto or the sufficiency of the provision for the collection of an annual tax sufficient to pay the interest on such indebtedness, or the principal thereof, as it falls due and/or to constitute a sinking fund for the payment of principal on or before maturity. If there is more than one action or proceeding involving the validity of any such bonds, indebtedness or contract, or the sufficiency of the provision for the collection of an annual tax sufficient for those purposes, they shall be consolidated and tried together. The court hearing any proceeding or action inquiring into the regularity, legality or correctness of the proceedings leading up to the making of such contract or contracts, the incurring of the indebtedness or issuance of bonds or the validity of such bonds or the sufficiency of such provision for the collection of an annual tax, must disregard any error, irregularity or omission which does not affect the substantial rights of the parties to the action or proceeding. The rules of pleading and practice provided by the Rules of Civil Procedure, which are not inconsistent with the provisions of this part, are applicable to all actions or proceedings herein provided for. The motion for a new trial of any such action or proceeding shall be heard and determined within ten days from the filing of the notice of intention. The costs on any proceeding or action herein provided for may be allowed and apportioned between the parties or taxed to the losing party, in the discretion of the court.

Amended by Chapter 254, 2000 General Session