2006 Utah Code - 17A-3-228 — Bonds.

     17A-3-228.   Bonds.
     (1) Fifteen days or more after the effective date of any ordinance levying an assessment in a special improvement district, the governing body levying the assessment, by ordinance or resolution, may authorize the issuance of special improvement bonds to pay the costs of the improvements in the district against the funds created by the assessment. The aggregate principal amount of the special improvement bonds so authorized shall not exceed the unpaid balance of the assessments at the end of this 15-day period. The special improvement bonds shall be fully negotiable for all purposes, shall mature at such time or times not exceeding the period of time over which installments of the assessments are due and payable plus one year, shall bear interest at the lowest rate or rates reasonably obtainable, shall be sold at the prices, either at, in excess of, or below their face value, shall be payable at the place or places, shall be in the form, and generally shall be issued and shall be sold in the manner and with those details as may be provided by ordinance or resolution. The bonds shall be dated no earlier than the effective date of the ordinance levying the assessment.
     (2) Except for special improvement bonds issued for light service or park maintenance purposes (which bonds shall bear interest only from their due date), interest shall be paid semiannually, annually, or at such other intervals or upon such other schedule as may be specified by the governing body and may be evidenced by interest coupons attached to the bonds.
     (3) The governing body may provide that the bonds shall be callable for redemption prior to maturity and fix the terms and conditions of redemption, including the notice to be given and the premium, if any, to be paid. No bonds are callable for redemption unless the terms and conditions of redemption are stated on the face of the bonds.
     (4) The bonds shall be signed and may be countersigned by the official or officials of the governing entity (including a member or members of the governing body) as designated by the governing body. If so provided by the governing body, the signatures on the bonds and interest coupons, if any, may be by facsimile signature if at least one signature required or permitted to be placed on the face of the bond is manually signed. Bonds or interest coupons bearing the signatures (manual or facsimile) of officers in office on the date of the execution of them shall be valid and binding obligations notwithstanding that before the delivery of the bonds any or all of the persons whose signatures appear on them shall have ceased to be officers of the governing entity.
     (5) The governing body may provide that the bonds shall bear interest at 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 bonds may bear.
     (6) The governing body may specify terms and conditions under which the bonds bearing interest at a variable interest rate may be converted to bear interest at a fixed interest rate.
     (7) The governing body may specify terms and conditions under which the governing entity agrees to repurchase the bonds. The governing body may secure a letter of credit or other instrument to secure payment or repurchase of any bonds. The governing body may engage a remarketing agent and an indexing agent, subject to terms and conditions agreed to by the governing body. The governing body may cause the special improvement district to pay the costs of the foregoing and any similar costs with respect to the bonds.

Amended by Chapter 92, 2002 General Session