2006 Utah Code - 17A-3-230 — Liability of governing entity on bonds.

     17A-3-230.   Liability of governing entity on bonds.
     (1) (a) Special improvement bonds are not a general obligation of the governing entity.
     (b) No governing entity may be held liable for the payment of any special improvement bond except to the extent of:
     (i) the funds created and received from assessments against which the bonds are issued; and
     (ii) its special improvement guaranty fund or reserve fund, as applicable.
     (c) The governing entity is responsible for the lawful levy of all assessments, for the creation and maintenance of the special improvement guaranty fund as provided by law, or the reserve fund, if applicable, and for the faithful accounting, collection, settlement, and payment of the assessments and for the moneys of the special improvement guaranty fund or reserve fund, as applicable.
     (2) (a) If any property is illegally assessed, or if any property that is exempted by law from assessment for local purposes is assessed, the governing entity assessing that property is liable to the holders of special improvement bonds issued against the funds created by those assessments.
     (b) The governing entity shall pay that amount from the general fund of the governing entity.

Amended by Chapter 214, 1990 General Session
Renumbered and Amended by Chapter 186, 1990 General Session