17D-2-505. Security for local building authority bonds.

245 words·~1 min read·/ut/title-17d/chapter-2/17d-2-505

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

(1)The principal of and interest on bonds that a local building authority issues under this part:

(a)shall be secured by a pledge and assignment of the revenue that the local building authority receives under its lease agreement with respect to the project that was financed with the bond proceeds;

(b)may be secured by:

(i)a mortgage covering some or all of the project;

(ii)a pledge and assignment of the lease agreement for that project;

(iii)money held in a reserve fund; and

(iv)any other security device with respect to the project that the local building authority considers most advantageous.

(2)A proceeding under which a mortgage is given to secure the bonds of a local building authority may contain any agreement or provision listed in Section 17D-2-503 that could be contained in a proceeding under which a local building authority is authorized to issue bonds under this part.

(3)A mortgage to secure bonds issued by a local building authority under this part may provide that:

(a)upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law; and

(b)the trustee or holder of any bond secured by the mortgage may become the purchaser at a foreclosure sale, if the trustee or holder is the highest bidder.

Enacted by Chapter 360 , 2008 General Session