(1) Subject to this section, restrictions imposed by bond covenants, restrictions in Section 53-2a-605, or other controlling regulations, the governing board of an interlocal entity may authorize an interfund loan from one fund to another.
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Terms Used In Utah Code 11-13-523

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Board: means the Permanent Community Impact Fund Board created by Section 35A-8-304, and its successors. See Utah Code 11-13-103
  • Budget: means a plan of financial operations for a fiscal year that embodies estimates of proposed expenditures for given purposes and the proposed means of financing them, and may refer to the budget of a particular fund for which a budget is required by law or may refer collectively to the budgets for all required funds. See Utah Code 11-13-501
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Fiscal year: means the annual period for accounting for fiscal operations in an interlocal entity. See Utah Code 11-13-501
  • Fund: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
  • General fund: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
  • Governing board: includes a board of directors described in an agreement, as amended, that creates a project entity. See Utah Code 11-13-103
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Interfund loan: means a transfer of assets from one fund to another, subject to future repayment. See Utah Code 11-13-501
  • Interlocal entity: includes a governmental nonprofit corporation, as that term is defined in Section 11-13a-102. See Utah Code 11-13-501
  • United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
  • Writing: includes :
         (48)(a) printing;
         (48)(b) handwriting; and
         (48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5
(2) An interfund loan under Subsection (1) shall be in writing and specify the terms and conditions of the loan, including the:

     (2)(a) effective date of the loan;
     (2)(b) name of the fund loaning the money;
     (2)(c) name of the fund receiving the money;
     (2)(d) amount of the loan;
     (2)(e) subject to Subsection (3), term of and repayment schedule for the loan;
     (2)(f) subject to Subsection (4), interest rate of the loan;
     (2)(g) method of calculating interest applicable to the loan;
     (2)(h) procedures for:

          (2)(h)(i) applying interest to the loan; and
          (2)(h)(ii) paying interest on the loan; and
     (2)(i) other terms and conditions the governing board determines applicable.
(3) The term and repayment schedule specified under Subsection (2)(e) may not exceed 10 years.
(4)

     (4)(a) In determining the interest rate of the loan specified under Subsection (2)(f), the governing board shall apply an interest rate that reflects the rate of potential gain had the funds been deposited or invested in a comparable investment.
     (4)(b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under Subsection (2)(f):

          (4)(b)(i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less than the rate offered by the Public Treasurers’ Investment Fund as defined in Section 51-7-3; or
          (4)(b)(ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be less than the greater of the rate offered by:

               (4)(b)(ii)(A) the Public Treasurers’ Investment Fund as defined in Section 51-7-3; or
               (4)(b)(ii)(B) a United States Treasury note of a comparable term.
(5)

     (5)(a) For an interfund loan under Subsection (1), the governing board shall:

          (5)(a)(i) hold a public hearing;
          (5)(a)(ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the proposed terms and conditions of the interfund loan under Subsection (2);
          (5)(a)(iii) provide notice of the public hearing in the same manner as required under Section 11-13-509 as if the hearing were a budget hearing; and
          (5)(a)(iv) authorize the interfund loan by resolution in a public meeting.
     (5)(b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the interfund loan is included in an original budget or in a subsequent budget amendment previously approved by the governing board for the current fiscal year.
(6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan is:

     (6)(a) a loan from the interlocal entity general fund to any other fund of the interlocal entity; or
     (6)(b) a short-term advance from the interlocal entity’s cash and investment pool to an individual fund that is repaid by the end of the fiscal year.
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