2006 Utah Code - 17A-3-911 — Security for payment of bonds.

     17A-3-911.   Security for payment of bonds.
     (1) The principal of and interest on any bonds issued under this part:
     (a) shall be secured by a pledge and assignment of the revenues received by the building authority under the lease contract with respect to the project financed with the proceeds of the sale of these bonds;
     (b) may be secured by a mortgage covering all or any part of the project;
     (c) may be secured by a pledge and assignment of the lease contract for that project; and
     (d) may be secured by amounts held in reserve funds or by such other security devices with respect to the project as may be deemed most advantageous by the authority.
     (2) The proceedings under which the bonds are authorized to be issued under this part and any mortgage given to secure the bonds may contain any agreements and provisions customarily contained in instruments securing bonds, including, but not limited to, provisions respecting:
     (a) the fixing and collection of rents for any project covered by these proceedings or mortgage;
     (b) the terms to be incorporated in the lease contract with respect to the project;
     (c) the operation, maintenance, and insurance of the project;
     (d) the creation and maintenance of reserve funds from the proceeds of sale of bonds or from the revenues of the project;
     (e) the rights and remedies available in the event of a default to the holders of bonds or to the trustee, as the board of trustees of the authority may determine in accordance with this part. The mortgages, trust deeds, security agreements, trust indentures, or other security devices shall provide that no deficiency judgment upon foreclosure may be entered against the authority or the public body or the State of Utah or any of its political subdivisions.
     (3) The proceedings authorizing bonds under this part, and any mortgage securing these bonds, may provide that upon default in the payment of the principal of or interest on the bonds or in the performance of any covenant or agreement contained in the proceedings or mortgages the payment or performance may be enforced by the appointment of a receiver for the project with power to rent or lease the property or part of it and charge and collect rents and to apply the revenues from the project in accordance with these proceedings or mortgage.
     (4) Any mortgage made under this part to secure bonds issued under this part may also provide that upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law. The mortgage may also provide that the trustee or the holder of any of the bonds secured by the mortgage may become the purchaser at any foreclosure sale, if the trustee or holder is highest bidder. No breach of a mortgage, covenant, or agreement shall impose any general obligation or liability upon, nor a charge against, the public body or the general credit or taxing power of this state or any of its political subdivisions.
     (5) The proceedings authorizing the issuance of bonds may provide for the appointment of a trustee, which may be a trust company or bank having trust powers located in or outside of this state.

Renumbered and Amended by Chapter 186, 1990 General Session