2006 Utah Code - 17A-3-331 — Payment of special improvement bonds.

     17A-3-331.   Payment of special improvement bonds.
     (1) (a) Special improvement bonds are not a general obligation of the municipality.
     (b) No municipality 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;
     (ii) any improvement revenues; and
     (iii) its special improvement guaranty fund or reserve fund, as applicable.
     (c) The municipality is responsible for the lawful levy of all assessments, for the collection and application of improvement revenues as provided by law, 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 improvement revenues 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 municipality assessing that property is liable to the holders of special improvement bonds issued against the funds created by those assessments.
     (b) The municipality shall pay that amount from the general fund of the municipality.

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