2006 Utah Code - 17A-3-232 — Special Improvement Guaranty Fund -- Sources -- Uses -- Investment -- Subaccounts.

     17A-3-232.   Special Improvement Guaranty Fund -- Sources -- Uses -- Investment -- Subaccounts.
     (1) (a) Any county that has issued or may subsequently issue any special improvement bonds or special improvement refunding bonds shall create a Special Improvement Guaranty Fund.
     (b) The fund shall be funded by:
     (i) appropriation from the General Fund;
     (ii) the issuance of general obligation bonds;
     (iii) the levy of a tax on all taxable property located in the unincorporated area of the county of not to exceed .0002 per dollar of taxable value of taxable property in any one year; or
     (iv) appropriation from other revenue sources as determined by the county.
     (c) If the fund is funded by a tax levy, the levy shall be a separate tax, exempt from the maximum levy limitation established for counties under Section 59-2-908.
     (d) The county shall establish the fund for the purpose of guaranteeing, to the extent of the fund, the payment of interim warrants or special improvement bonds and special improvement refunding bonds and interest on them issued against special improvement districts for the payment of improvements made within the district.
     (2) (a) Any Chapter 2, Part 3 district that has issued or may subsequently issue any special improvement bonds or special improvement refunding bonds shall create a Special Improvement Guaranty Fund.
     (b) The fund shall be funded by:
     (i) appropriation from the General Fund;
     (ii) the issuance of general obligation bonds;
     (iii) the levy of a tax on all taxable property located in the unincorporated area of the Chapter 2, Part 3 district, of not more than .0002 per dollar of taxable value of taxable property in any one year; or
     (iv) appropriation from other revenue sources as determined by the governing body.
     (c) If the fund is funded by a tax levy, the levy shall be a separate tax, exempt from the maximum levy limitation established for Chapter 2, Part 3 districts under Section 17A-2-312.
     (d) The district shall establish the fund for the purpose of guaranteeing, to the extent of the fund, the payment of interim warrants or special improvement bonds and special improvement refunding bonds and interest on them issued against special improvement districts for the payment of improvements made within them.
     (3) The governing entity may covenant for the benefit of the holders of interim warrants or special improvement bonds and special improvement refunding bonds that so long as the warrants or bonds and special improvement refunding bonds are outstanding and unpaid:
     (a) it will create the fund;
     (b) it will:
     (i) by any of the methods authorized by this section, transfer to the fund each year an amount that a tax levy of up to .0002 per dollar of taxable value of taxable property will produce until the fund is equal to not less than 10% of the amount of all outstanding interim warrants or special improvement bonds and special improvement refunding bonds of all special improvement districts of the governing entity;
     (ii) transfer to the fund at least yearly whatever amounts are required to maintain or replenish the fund to this percentage; and

---

     (iii) retain any interest received from the investment of the guaranty fund in the fund and use the interest only for the purposes for which the fund was created; and
     (c) it will invest the funds on deposit in the guaranty fund according to the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
     (4) A county may create subaccounts within the Special Improvement Guaranty Fund with respect to each issue of special improvement bonds outstanding in a manner that it considers appropriate to allocate among the bond issues the securities held in and interest earnings on the guaranty fund for purposes of complying with federal law.
     (5) For purposes of Subsection (3)(b), special improvement refunding bonds are not considered to be outstanding until the principal of, interest, and any redemption premiums on the special improvement bonds that are refunded by the special improvement refunding bonds are fully paid.

Amended by Chapter 285, 1992 General Session