Utah Code Title 11. Cities, Counties, and Local Taxing Units § 11-42-702. Reserve fund

(a) the bonds secured by the reserve fund are not secured by a guaranty fund under Section 11-42-701;

(b) the local entity is not required to fund a guaranty fund under Section 11-42-701 for those bonds; and

(c) unless otherwise provided in this part or in the proceedings authorizing the issuance of bonds, the provisions of this part regarding a guaranty fund have no application to the bonds that are secured by the reserve fund.

(a) fund and replenish the reserve fund in the amounts and manner provided in the proceedings authorizing the issuance of the bonds that are secured by the reserve fund; and

(b) invest the funds on deposit in the reserve fund as provided in Title 51, Chapter 7, State Money Management Act.

(4)(a) Subject to Subsection (4)(b), a local entity may replenish a reserve fund under this section by any of the methods described in Subsection 11-42-701(1)(b).

(b) The proceedings authorizing the issuance of assessment bonds or refunding assessment bonds shall provide that if a local entity uses any of the methods described in Subsection 11-42-701(1)(b) to replenish a reserve fund, the local entity shall be reimbursed, with interest at a rate that the local entity determines, with money that the local entity receives from foreclosing on delinquent property.

(a) terminate the reserve fund; and

(b) disburse all remaining money in the fund as provided in the proceedings authorizing the issuance of the bonds.