2006 Utah Code - 17A-3-910 — Payment of bonds.

     17A-3-910.   Payment of bonds.
     Except as secured as provided in Section 17A-3-911, all bonds issued by a building authority and the interest on them, shall be payable solely out of rentals or lease payments received by the authority under the leasing contract with respect to the project acquired, improved, or extended with the proceeds of that issue of bonds, and all bonds shall so state on their face. Nothing in this part shall be construed as requiring the State of Utah or any political subdivision of the state to pay any bond issued under this part, or any interest on them, or (except for the public body) to pay any rental due to a building authority under the terms of any leasing contract. Neither shall anything in this part be construed as requiring the public body to appropriate any money to pay principal of or interest on the bonds or the rentals under any leasing contract. If a public body fails to pay any rentals due to an authority under any leasing contract, that public body shall immediately quit and vacate the project, and its rental or lease payment obligation thereunder shall terminate; and the authority may then immediately lease the project in accordance with the provisions of the proceedings under which bonds are authorized and in accordance with the provisions of any mortgage given to secure the bonds.

Renumbered and Amended by Chapter 186, 1990 General Session