2006 Utah Code - 17A-3-210 — Interim warrants.

     17A-3-210.   Interim warrants.
     (1) (a) As work proceeds in a special improvement district, the governing body may issue interim warrants against the district:
     (i) for an amount not to exceed 90% of the value of the work previously done, upon estimates of the project engineer;
     (ii) after completion of the work and acceptance of the work by the project engineer and by the governing body, for 100% of the value of the work completed; and
     (iii) where improvements in the district require the acquisition of property, for not more than the property price.
     (b) Subject to the provisions of Section 17A-3-209, the governing body may issue warrants to:
     (i) a contractor, to apply at par value on the contract price for the improvements; or
     (ii) to the owner of the acquired property, to apply at par value on the property price.
     (c) The governing body may also issue and sell warrants at not less than par value in a manner determined by the governing body and apply the proceeds of the sale towards payment of the contract price and property price.
     (2) (a) Interim warrants shall bear interest from date of issue until paid.
     (b) The governing body shall specify the interest rate or rates, which may be a fixed rate or rates, a variable rate or rates, or a combination of fixed and variable rates. In the case of a variable interest rate or rates, the governing body shall specify the basis upon which the rate or rates shall be determined from time to time, the manner in which and schedule upon which the rate or rates shall be adjusted, and a maximum rate that the interim warrants may bear.
     (c) The governing body may fix a maturity date for each interim warrant. If a warrant matures before the governing body has available to it the sources of payment itemized in Subsection (3)(a), (b), (c), or (d), it may authorize the issuance of a new interim warrant to pay the principal and interest on the warrant falling due.
     (d) Interest accruing on interim warrants shall be included as a cost of the improvements.
     (3) The governing body shall pay interim warrants and interest on the warrants from one or more of the following sources:
     (a) issuance of or proceeds from the sale of special improvement bonds issued against the district;
     (b) cash received from the payment for improvements;
     (c) payment of assessments not pledged to the payment of the bonds;
     (d) the guaranty fund if appropriate; or
     (e) proceeds of an interim warrant.
     (4) With the authorization of the governing body, the governing entity may purchase any or all of the interim warrants issued against the district and may use the governing entity's general funds for this purchase.

Amended by Chapter 92, 2002 General Session