2006 Utah Code - 17A-3-335 — Reserve fund in lieu of Special Improvement Guaranty Fund -- Investment.

     17A-3-335.   Reserve fund in lieu of Special Improvement Guaranty Fund -- Investment.
     (1) (a) The municipality may, in lieu of creating and funding a Special Improvement Guaranty Fund with respect to an issue of special improvement bonds, establish a reserve fund to secure the issue.
     (b) If the municipality establishes a reserve fund, the special improvement bonds secured by the reserve fund are not secured by the special improvement guaranty fund and the municipality is not required to fund the special improvement guaranty fund for the bond issue.
     (c) Unless otherwise provided in this part or in the proceedings authorizing the issuance of the bonds, all provisions in this part with respect to the special improvement guaranty fund have no application with respect to bonds secured by a reserve fund.
     (d) The reserve fund shall be funded in amounts and in a manner as provided in the proceedings authorizing the issuance of the bonds.
     (e) Upon the retirement of any special improvement bonds secured by a reserve fund, the reserve fund shall be terminated and all remaining moneys on deposit in the fund shall be disbursed in the manner provided in the proceedings authorizing the issuance of the bonds.
     (2) The municipality shall invest the funds on deposit in the reserve fund by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act.

Amended by Chapter 285, 1992 General Session