2012 Utah Code
Title 11 - Cities, Counties, and Local Taxing Units
Article 42 - Assessment Area Act
Section 503 - Local entity payments to avoid a default in local entity obligations -- Reimbursement of payments when property sold at tax or foreclosure sale.

(1) To avoid a default in the payment of outstanding local entity obligations, a local entity may pay:

(a) the delinquent amount due, plus interest, penalties, and costs;

(b) the amounts described in Subsection (1)(a) and the full balance of an assessment, if accelerated; or

(c) any part of an assessment or an installment of an assessment that becomes due during the redemption period.

(2) A local entity may:

(a) pay the amounts under Subsection (1) from a guaranty fund or a reserve fund, or from any money legally available to the local entity; and

(b) charge the amounts paid against the delinquent property.

(3) (a) Upon the tax sale or foreclosure of the property charged as provided in Subsection (2):

(i) all amounts that the local entity paid shall be included in the sale price of the property recovered in the sale; and

(ii) the local entity's guaranty fund, reserve fund, or other source of money paid under Subsection (2)(a), as the case may be, shall be reimbursed for those amounts.

(b) If the property charged as provided in Subsection (2) is sold to the local entity at the tax sale or foreclosure and additional assessment installments become due, the local entity:

(i) may pay the additional installments from the guaranty fund or reserve fund, as the case may be, or from any legally available money;

(ii) shall recover, in a sale of the property, the amount of the installments paid; and

(iii) shall reimburse the guaranty fund or reserve fund when the property is sold.

Enacted by Chapter 329, 2007 General Session