2006 Utah Code - 17A-2-1316 — Borrowing power -- Issuance of bonds and notes -- Use of proceeds.

     17A-2-1316.   Borrowing power -- Issuance of bonds and notes -- Use of proceeds.
     (1) A service district may borrow money and incur indebtedness, issuing its bonds or notes therefor, including, without limitation:
     (a) bonds payable in whole or in part from taxes levied on the taxable property in the service district;
     (b) bonds payable from revenues derived from the operation of revenue-producing facilities of the service district;
     (c) bonds payable from both such revenues and taxes;
     (d) guaranteed bonds, payable in whole or in part from taxes levied on the taxable property in the service district;
     (e) tax anticipation notes;
     (f) bond anticipation notes;
     (g) refunding bonds; and
     (h) bonds payable in whole or in part from mineral lease payments as provided in Section 11-14-308.
     (2) Tax anticipation notes are notes issued in anticipation of the collection of taxes and other revenues of a service district which are due and payable in not more than one year from their date of issue and, together with all other such notes then outstanding, do not exceed the estimated amount of taxes and other revenues to be collected from the date of issue until maturity.
     (3) Bond anticipation notes are notes issued in anticipation of the receipt of the proceeds of bonds of the service district.
     (4) All these bonds and notes shall be issued and sold in the manner, at either public or private sale, shall be in the form, and signed by the person or persons, who may, but need not, be officers of the county or municipality which established the service district and generally shall be issued in the manner and with the details as is provided for in proceedings of the governing authority of the service district authorizing the issuance of the bonds or notes; but all these bonds and notes and the interest on them shall be exempt from all taxation in this state, except for the corporate franchise tax, and all these bonds and notes may contain those terms and provisions as are permitted by and shall be issued in compliance with Title 11, Chapter 14, Local Government Bonding Act.
     (5) The proceeds of bonds or notes issued under the authority of this part shall be used to pay the costs of acquisition or construction of service district facilities or the providing of services including, without limitation:
     (a) all costs of planning, designing, acquiring, and constructing a facility, including architectural, planning, engineering, legal, and fiscal advisor's costs;
     (b) all costs incident to the authorization and issuance of the bonds or notes, including accountants' fees, attorneys' fees, financial advisors' fees, underwriting fees, including underwriting fees or bond discount, and other professional services and printing costs;
     (c) interest estimated to accrue on bonds or notes for a reasonable time before, during, and for a reasonable time after the completion of the acquisition or construction of the facilities or services; and
     (d) all amounts deemed necessary to establish one or more bond reserves and maintenance, repair, replacement, contingency funds and accounts, and all amounts necessary to provide working capital for the facility.

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Amended by Chapter 105, 2005 General Session