17B-2a-1407. Revenue bonds -- Commission review and approval.

410 words·~2 min read·/ut/title-17b/chapter-2a/17b-2a-1407

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)The district may issue revenue bonds to finance the acquisition, construction, improvement, or equipping of energy infrastructure facilities within a designated service area.

(a)Revenue bonds issued under this section:

(i)are limited obligations of the district payable solely from revenues deposited into the enterprise fund described in Section 17B-2a-1408 ;

(ii)do not constitute a general obligation or liability of, or a charge against the general credit or taxing power of, the state or any political subdivision of the state;

(iii)are not subject to the debt limitations of Utah Constitution, Article XIV; and

(iv)shall state on the face of each bond the limitation described in Subsection (2)(a)(ii) .

(b)Notwithstanding the requirements in Subsection (2)(a)(iv) , the failure to state on the face on the bond the limitation described in (2)(a)(ii) does not have any impact on the limited obligation described in this section.

(a)The commission shall review and may approve a bond before the district may issue a bond.

(b)The commission may not approve issuance of a bond described in Subsection (3)(a) unless the execution and terms of the bond comply with state law.

(c)If, after review, the commission approves a bond described in Subsection (3)(a) , the district:

(i)may not change before issuing the bond the terms of the bond that were reviewed by the commission if the change is outside the approved parameters and intended purposes; and

(ii)is under no obligation to issue the bond.

(d)A member of the commission who approves a bond under Subsection (3)(a) is not personally liable on the bond.

(e)The approval of a bond under Subsection (3)(a) :

(i)is not an obligation of the state; and

(ii)is not an act that:

(A)lends the state's credit; or

(B)constitutes indebtedness within the meaning of any constitutional or statutory debt limitation.

(4)The district may pledge to the payment of revenue bonds any legally available revenues of the district.

(5)The district may establish reserve funds, debt service funds, and other funds as required by bond indentures or trust agreements securing revenue bonds issued under this section.

(6)The district may issue refunding bonds to refund outstanding revenue bonds issued under this section.

(7)Notwithstanding Chapter 1, Part 11, Special District Bonds, the district may not issue general obligation bonds.

Enacted by Chapter 474 , 2026 General Session