2006 Utah Code - 63-61-3 — Redemption fund -- Creation -- Sources -- Use -- Investment -- Income.

     63-61-3.   Redemption fund -- Creation -- Sources -- Use -- Investment -- Income.
     (1) There is created a special fund to be known as the "Tax and Revenue Anticipation Note Redemption Fund," referred to in this chapter as the "redemption fund." When any notes have been issued in anticipation of income or revenue under this chapter, not less than two days before the principal and interest on the notes comes due, income or revenue realized from the tax or nontax sources specified in the approved plan of financing to be anticipated or from any other source or sources of monies legally available for such purpose shall be placed in the redemption fund so that the amount in the redemption fund is sufficient to pay the principal amount of all notes outstanding, together with interest on them.
     (2) The money in the redemption fund is appropriated solely for the payment of the principal of and interest on the notes issued under this chapter. The payment of the principal and interest on the notes issued under this chapter is not limited solely to the income and revenues from the specific tax or nontax sources in anticipation of which the notes were issued. Accrued interest received upon the sale of the notes shall be deposited by the state treasurer in the redemption fund.
     (3) The state treasurer may invest all money in the redemption fund in accordance with Title 51, Chapter 7, State Money Management Act of 1974, maturing at a time which will permit payment of the principal of and interest on the notes in a timely manner when due. The state treasurer may covenant with the purchasers of the notes as to the manner of holding money in the redemption fund, the investment of money in the redemption fund, and the disposition of any investment income therefrom by retaining investment income in the redemption fund to be used to pay principal of and interest on notes when due or by paying the investment income to the state treasurer for deposit into the General Fund. If there is sufficient money in the redemption fund to pay all principal of and interest on all outstanding notes payable therefrom, all investment income on it shall be paid to the state treasurer for deposit into the General Fund.

Amended by Chapter 202, 1987 General Session