2006 Utah Code - 17A-3-334 — Special Improvement Guaranty Fund -- Sources -- Uses -- Investment -- Subaccounts.

     17A-3-334.   Special Improvement Guaranty Fund -- Sources -- Uses -- Investment -- Subaccounts.
     (1) (a) Any municipality 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 levy of a tax of not to exceed .0002 per dollar of taxable value of taxable property in any one year;
     (iii) the issuance of general obligation bonds; or
     (iv) appropriation from other sources as determined by the governing body.
     (c) This fund shall be for the purpose of guaranteeing, to the extent of this fund, the payment of special improvement bonds and special improvement refunding bonds and interest accruing on them issued against special improvement districts for the payment of improvements made in the district.
     (2) The municipality may lawfully covenant for the benefit of the holders of special improvement bonds and special improvement refunding bonds that so long as the 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, provide amounts to be transferred to the fund equal each year to the amount that a tax levy of .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 special improvement bonds and special improvement refunding bonds of all special improvement districts of the municipality; and
     (ii) subsequently, it will transfer to the fund at least yearly whatever amounts are required to maintain or replenish the fund to this percentage; and
     (c) it will invest the funds on deposit in the guaranty fund by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
     (3) A municipality may create subaccounts within the Special Improvement Guaranty Fund with respect to each issue of special improvement bonds outstanding in a manner 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.
     (4) For purposes of Subsection (2)(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