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Utah Code Title 17D. Limited Purpose Local Government Entities--Other Entities § 17D-2-505. Security for local building authority bonds

Current as of May 05, 2022 | Updated by FindLaw Staff

(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.

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Cite this article: FindLaw.com - Utah Code Title 17D. Limited Purpose Local Government Entities--Other Entities § 17D-2-505. Security for local building authority bonds - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-17d-limited-purpose-local-government-entities-other-entities/ut-code-sect-17d-2-505/

Read this complete Utah Code Title 17D. Limited Purpose Local Government Entities--Other Entities § 17D-2-505. Security for local building authority bonds on Westlaw

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