11-42-606. Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.
229 words·~1 min read·
/ut/title-11/chapter-42/11-42-606A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
11-42-606. Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.
(1)Assessment bonds are not a general obligation of the local entity that issues them.
(2)A local entity that issues assessment bonds:
(a)may not be held liable for payment of the bonds except to the extent of:
(i)funds created and received from assessments against which the bonds are issued;
(ii)improvement revenues; and
(iii)the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702 ; and
(b)is responsible for:
(i)the lawful levy of all assessments;
(ii)the collection and application of improvement revenues, as provided in this chapter;
(iii)the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and
(iv)the faithful accounting, collection, settlement, and payment of:
(A)assessments and improvement revenues; and
(B)money in a guaranty fund or, if applicable, a reserve fund.
(3)If a local entity illegally assesses property that is exempt from assessment, the local entity:
(a)is liable to the holders of assessment bonds for the payment of the illegal assessment; and
(b)shall pay the amount for which it is liable under Subsection (3)(a) from the local entity's general fund or other legally available money.
Enacted by Chapter 329 , 2007 General Session