2006 Utah Code - 17A-3-906 — Leasing contract prior to acquisition of site or construction of project authorized -- Contractor\'s bond.

     17A-3-906.   Leasing contract prior to acquisition of site or construction of project authorized -- Contractor's bond.
     A public body may enter into a leasing contract prior to the acquisition of a site or the construction of the project. The leasing contract shall provide that no payment of any lease rental shall be made by the lessee until acquisition or construction of the project is completed. The building authority shall agree to furnish or cause the construction contractor to furnish a bond satisfactory to the lessee conditioned upon final completion of the project as expeditiously as reasonably possible from the date of execution of the leasing contract and also conditioned upon delivery of possession of the project to the lessee free and clear of all liens and encumbrances, except taxes, liens, and encumbrances on the building authority's interest in the leased property, and easements and restrictions in the record title accepted by the lessee.

Renumbered and Amended by Chapter 186, 1990 General Session