2006 Utah Code - 17A-3-310 — Interim warrants.

     17A-3-310.   Interim warrants.
     (1) (a) As work proceeds in a special improvement district, the governing body may issue interim warrants against the district:
     (i) as portions of the work are completed, for not more than 90% of the value of the completed work as estimated by the engineer of the municipality;
     (ii) after completion of the work and acceptance of the work by the engineer of the municipality 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-3-309, 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 property, to apply at par value on the property price.
     (c) The governing body may also issue and sell the 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 Subsections (3)(a), (b), or (c), it may authorize the issuance of a new 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 in the special improvement district.
     (3) The governing body shall pay interim warrants and interest on the warrants from one or more of the following sources:
     (a) proceeds from the sale of special improvement bonds issued against the district;
     (b) cash received from the payment of assessments not pledged to the payment of the bonds;
     (c) improvement revenues not pledged to the payment of the bonds; or
     (d) proceeds of an interim warrant.

Amended by Chapter 92, 2002 General Session