17D-2-401. Project lease agreements.

226 words·~1 min read·/ut/title-17d/chapter-2/17d-2-401

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

(1)A local building authority and its creating local entity may enter into a lease agreement with respect to a project that the local building authority:

(a)has constructed, acquired, improved, or extended on behalf of the creating local entity; or

(b)will construct, acquire, improve, or extend on behalf of the creating local entity.

(a)A local building authority and its creating local entity may enter into a lease agreement before the local building authority's acquisition of a site or construction of the project.

(b)Each lease agreement described in Subsection (2)(a) shall:

(i)provide that the creating local entity is not required to make a lease payment until acquisition or construction of the project is completed; and

(ii)require the local building authority to furnish or cause the construction contractor to furnish a bond satisfactory to the creating local entity, conditioned upon:

(A)final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and

(B)delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except:

(I)taxes, liens, and encumbrances on the local building authority's interest in the leased property; and

(II)easements and restrictions that the creating local entity accepts.

Enacted by Chapter 360 , 2008 General Session