51-12-202. Terms of deposit.

354 words·~2 min read·/ut/title-51/chapter-12/51-12-202

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

Effective 7/1/2025

(1)The state treasurer shall enter into a deposit agreement with an approved qualified depository in accordance with Section 51-12-201 .

(2)The deposit agreement shall provide that the qualified depository:

(a)shall offer loan financing to a developer or city of the first or second class of a qualified project at a rate no higher than 150 basis points above the federal funds effective rate at the time of the deposit;

(b)shall return the amount of deposit:

(i)with interest at a rate equal to the greater of:

(A)the federal funds effective rate at the time of the deposit minus 200 basis points; or

(B)0.5%; and

(ii)at the earlier of:

(A)24 months from the day on which the deposit is made;

(B)repayment of the loan financing;

(C)the sale of the last home in the qualified project; or

(D)June 30, 2028;

(c)is responsible for return of the amount of the deposit with accrued interest regardless of the completion of the qualified project or the repayment of the qualified depository's loan to the developer or city of the first or second class of the qualified project; and

(d)shall report to the state treasurer the total number of housing units and the number of attainable homes each qualified project created.

(a)Notwithstanding the provisions of Subsections (2)(b)(ii) and (2)(c), for a deposit made to the Utah Housing Corporation, the Utah Housing Corporation shall return the amount of the deposit with accrued interest when the Utah Housing Corporation has received:

(i)repayment of the loan financing; or

(ii)proceeds from the sale or other disposition of the homes in the qualified project.

(b)The Utah Housing Corporation may return the deposit later than the time period described in Subsection (2)(b)(ii)(A) or

(D)without penalty.

(4)A qualified depository may return the deposit earlier than the time period described in Subsection (2)(b)(ii) without penalty.

(5)The state treasurer shall deposit the return of the amount of the deposit, including interest, into the fund.

Amended by Chapter 391 , 2025 General Session