2006 Utah Code - 17A-2-1318 — Guaranteed bonds.

     17A-2-1318.   Guaranteed bonds.
     (1) Guaranteed bonds may be issued in addition to and in excess of the 12% limitation provided for in Section 17A-2-1317, but only upon the conditions provided for in Subsections (2) and (3).
     (2) There shall have been filed with and approved by the Governor's Office of Economic Development the following:
     (a) a report to the service district proposing to issue the guaranteed bonds from qualified registered architects or engineers or other persons qualified by experience as may be appropriate to the project involved, setting forth:
     (i) the estimated or, if available, the actual cost of acquisition, construction, and equipment of the project financed or to be financed including a description of the project;
     (ii) the principal amount of guaranteed bonds to be issued, the date and amount of each stated maturity of them and, set forth separately, the same information with respect to any guaranteed bonds of the service district as may be outstanding, including as to such outstanding guaranteed bonds the rates of interest they bear;
     (iii) the amount and the estimated amount of the annual debt service for each year during the life of all guaranteed bonds issued and then intended to be issued to finance all or any part of the project; and
     (iv) the date or estimated date of the completion of the project;
     (b) a copy, certified by the recording officer of the governing authority of the service district of the proposed guarantee by one or more taxpayers owning property within the boundaries of the service district of debt service on the guaranteed bonds, together with an opinion of counsel to the effect that the guarantee, when executed, will be the legal and binding obligation of the taxpayer or taxpayers in accordance with its tenor and terms; and
     (c) evidence satisfactory to the Governor's Office of Economic Development from the taxpayer or taxpayers guaranteeing the bonds as to the financial ability of the taxpayer or taxpayers to perform under the guarantee.
     (3) If the Governor's Office of Economic Development approves the issuance of the guaranteed bonds, it shall indicate its approval upon a duplicate original of the proceedings and return the same to the service district. Upon the filing of this approval in the office of the county recorder in which the governing authority is located, the principal amount of guaranteed bonds may be issued, but only upon compliance with the election requirements of Section 17A-2-1322.
     (4) If the principal amount of any guaranteed bonds which having once been issued, remain outstanding but by their terms no longer enjoy the benefit of the guarantee, shall be included in the determination of bonded indebtedness for the purpose of the 12% limitation contained in Section 17A-2-1317. The service district shall on July 1st of each year file with the department of community affairs a report certifying:
     (a) the total amount of bonds and other debt then outstanding and subject to the 12% limitation of Section 17A-2-1317;
     (b) the total amount of guaranteed bonds then outstanding and not subject to such 12% limitation; and
     (c) the total amount of bonds which, during the preceding 12 months, were deemed by their terms to no longer enjoy the benefit of the guarantee.

Amended by Chapter 148, 2005 General Session